INDIA CEMENTS LTD., MADRAS vs COMMISSIONER OF INCOME-TAX, MADRAS

The Supreme Court held that the expenditure incurred by the appellant company for obtaining a loan was revenue expenditure under Section 10(2)(xv) of the Indian Income-tax Act, 1922. The Court clarified that there is no distinction between interest on a loan and the expenditure incurred to obtain the loan, as both are necessary for the business. It was determined that a loan is a liability and not an asset, and thus the expenses related to it are deductible as they are incurred wholly and exclusively for business purposes.