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2019 (1) TMI 868 - HC - Income TaxClaim of deduction as interest - amount credited to decommissioning Reserve fund - assessee collected decommissioning costs from its customers - Assessee had to account for 12% interest on such decommissioning charges collected by it - Held that:- We are in agreement with the view of the Tribunal. As noted, the assessee was under directives of the Government of India to collect and create decommissioning reserves which would be utilized for decommissioning of the plant at the end of its useful life. The amount so collected from the customers would be in the possession of the assessee and would be utilized for the purpose of its business. The Government of India, therefore, required the assessee to account for the interest which was also specified at 12% p.a. on said funds. The interest expenditure was claimed by the assessee by way of deduction. This interest expenditure was clearly business expenditure. The situation is akin to the assessee borrowing from the market, utilizing such borrowed funds for the purpose of business and paying interest to the creditors. No question of law arises
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