Interest on borrowed fund - revenue expenditure, Income Tax

[S.C.GUPTA]

An existing private limited company in transportation business wants to acqire another pvt.ltd. company doing tansportation business by utilising funds borrowed for this purpose. Whether interest paid on such borrowed funds is an allowable revenue expenditure under Income Tax Act.

Posts / Replies

[Surender Gupta]

There are number of contradictory judgments are available. Only a careful study would help to find a suitable solution.