Breaking: Loan Taken For Carrying On Business Of Financing is Allowable As General Deduction Under Income Tax Act- Supreme Court

In the case of WIPRO Finance Limited Vs CIT, the Supreme Court of India has held that:

The Hon’ble three judges bench of Supreme Court in this case was considering assessee’s appeal against the order of the High court which had reversed the findings of ITAT that the expenditure of Rs 1.10 crore towards foreign exchange fluctuation loss was a revenue expenditure. The Hon’ble Court based on the famous decision in the case of India Cement as well as Empire Jute held that as no new asset was created ,the expenditure was fully allowable.

Also the Court upheld the power of ITAT to allow a fresh claim for the first time before it by explaining the limitation to entertain a fresh claim in view of the decision in the case of Goetze India Ltd would apply only as far as claim before AO is concerned and ITAT having been vested with plenary powers no such limitations can be read into the provisions. Thus, the appeal was allowed.

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