1998 TAX. L. R. 345 ::(1997) 143 CurTaxRep 419 ::(1998) 29 CorLA 16 ::(1998) 233 ITR 762 ::(1998) 96 Taxman 400 ::(1998) 144 Taxation 393

Bombay High Court

Hon'ble Judge(s): B. P. Saraf, Pratibha Upasani , JJ

Profits and gains of business - Deductions - Revenue expenditure - What is - Guarantee commission paid by assessee running concern to Bankers for securing timely repayment of loan - Is a revenue expenditure and not capital expenditure - Act of borrowing money is incidental to carrying on of business and loan obtained is not an asset or advantage of enduring nature. Income-Tax Act (43 of 1961) , S.37(1)— AIR 1966 SC 1053, Rel. on.Case law discussed. (Para 10 14)