1994 (1) TMI 25 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, allowing deduction of interest on loan for the purchase of a property used for business purposes. The Revenue's objection was overruled as the property was acquired for the business of the assessee-company. The court held that the interest paid on the borrowed funds was allowable as a business expenditure, regardless of the capital utilization in the previous year. The decision was based on the intention of the assessee to use the property for business purposes.