Kerala Road Lines vs Commissioner Of Income Tax, Cochin

The Supreme Court addressed two appeals concerning the interpretation of Section 37 of the Income-tax Act regarding the deductibility of interest as revenue expenditure. The Court upheld the High Court's ruling that the interest payment was a capital expenditure, not deductible under Section 37, as it was incurred in connection with the purchase of property. The Court dismissed Civil Appeal No. 5308 of 2002 and upheld the High Court's decision in ITR No. 310 of 1999, affirming the revenue's position.