Supreme Court · 2008 INSC 162 · Decided 8 February 2008
Deputy Commissioner, Income Tax, Baroda v. Gujarat Alkalies & Chemicals LTD.
- Court
- Supreme Court of India
- Citation
- 2008 INSC 162 · [2008] 2 S.C.R. 654
- Case number
- CIVIL APPEAL No. 3957/2002
- Decided
- 8 February 2008
- Bench
- S.H. KAPADIA, B. SUDERSHAN REDDY (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 36, 37
Headnote
Income Tax Act, 1961: s. 36 (1 )(iii) and 37 - 'Commitment charges' on borrowed C capital from a bank- Refinanced by foreign bank- Claim of, as deduction under s. 36 (1 )(iii) - Held: Allowed as deduction uls 37 and not uls 36 (1 )(iii) of the Act. -o E s. 36 (1 )(iii) on borrowed capital - Nature of - Held: Is similar to payment of interest - Equated with commitment charges and treated as revenue expenditure - Hence, deductible uls 37 of the Act. Words and Phrases: 'Commitment charges' - Meaning of The questions which arose for consideration in these appeals
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