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TMI Blog1982 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, pursuant to a direction of this court and the following question of law has been referred for our opinion: " Whether, on the facts and in the circumstances of this case, the sum of Rs. 4,970 spent by the assessee was of the nature of revenue expenditure allowable under section 37 of the Income-tax Act, 1961, or was in the nature of capital expenditure ? " The assessee, an individual, derive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ITO, however, rejected the claim and held that the expenditure was of a capital nature copy of the assessment order has been marked, annex. B. In appeal, the AAC confirmed the order of the ITO by his order dated May 1, 1969, a copy of which has been marked as annex. C and forms part of the case. The assessee preferred a second appeal before the Tribunal. The Tribunal, after hearing the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this submission, as the Tribunal has held that the sale deed had already been executed by the father in favour of the assessee. Thus, the title to the property which may be called a capital investment was already complete. The subsequent execution of a mortgage deed for securing the unpaid consideration money was not for the purpose of obtaining any capital asset. The point is squarely covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the principle will not be different, as the Supreme Court has now settled the law. It has been laid down that expenditure incurred in raising loans is allowable as business expenditure on revenue account irrespective of whether the funds are borrowed for capital outlay or for revenue disbursement. We must make it however, clear that such an assumption is unwarranted on the facts of the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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