M/S. KERALA ROAD LINES vs COMMNR. OF INCOME TAX, COCHIN

The Supreme Court addressed two appeals concerning the deductibility of interest payments under Section 37 of the Income-tax Act. The Court upheld the High Court's ruling that the interest paid by the assessee for delayed payment on a property purchase was capital expenditure, not revenue expenditure, thus disallowing the deduction. The Court also affirmed the High Court's decision regarding the rectification of orders under Section 256(1), emphasizing the Tribunal's inherent power to rectify mistakes apparent from the record.