CIT v. Thiru Arooran Sugar Ltd. (2021) 283 Taxman 156 (Mad.)(HC)

S. 37(1) : Business expenditure-Interest-Prepayment premium-Corporate debt restructuring-Allowable as deduction.

Held that one time payment made by assessee towards pre-payment premium and interest compense to banks for agreeing to reduce rate of interest on loan pursuant to Corporate Debt Restructuring was business expenditure to be allowed deduction as revenue expenditure.  (AY. 2007-08)