AIR 2015 SC (Supp) 1212

Supreme Court Of India

(From : Bombay)*

Hon'ble Judge(s): A. K. Sikri, R. F. Nariman , JJ

(A) Income-Tax Act (43 of 1961) , S.43(ii)— Definition of 'paid' - Means actually paid or incurred according to method of accounting. (Para 9) (B) Income-Tax Act (43 of 1961) , S.37, S.35D— Revenue expenditure - There is no concept of deferred revenue expenditure in the Act - Except under specified sections i.e. where amortization is specifically provided such as S. 35-D of the Act. (Para 14) (C) Income-Tax Act (43 of 1961) , S.36(1)(iii)— Revenue expenditure - Deduction - Assessee following mercantile system of accounting - Issue of debentures by assessee - Life of debentures was five years - Payment of interest upfront to debenture holder - Allowable in first year itself - Cannot be spread over period of five years - Further assessee was not stopped from claiming deduction in year of its payment merely because it had spread over in books of account over period of five years - Matching concept cannot be invoked in facts. 2003 (180) Cur Tax Rep 256 (Bom), Reversed. Evidence Act (1 of 1872) , S.113— In the instant case in the debenture issue of the assessee two options as regards payment of interest thereupon were given to the....