Capitalisation of interest: post-commencement interest cannot be capitalised, barring investment allowance and depreciation on such amounts. Post-commencement interest relating to the period after commencement of production or installation is revenue in character, cannot be capitalised, and therefore no investment allowance or depreciation can be allowed on capitalised amounts consisting of such interest including future interest; assessing authorities are to reject such claims.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capitalisation of interest: post-commencement interest cannot be capitalised, barring investment allowance and depreciation on such amounts.
Post-commencement interest relating to the period after commencement of production or installation is revenue in character, cannot be capitalised, and therefore no investment allowance or depreciation can be allowed on capitalised amounts consisting of such interest including future interest; assessing authorities are to reject such claims.
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