INTEREST ON LOAN

[Shipra Agarwal]

Whether the interest payment for the unused leasehold land in the partnership firm is to be capitalised or is a revenue expenditure? The land ia idle and there is no any use of it and also it is not kept aside for any specific project or purpose. Is there any case law relating to it?

AI Summary

Interest Payment for Idle Leasehold Land in Partnership Firm Should Be Treated as Revenue Expenditure A query was raised regarding whether the interest payment for unused leasehold land in a partnership firm should be capitalized or treated as a revenue expenditure. The land is currently idle, not being used, and not reserved for any specific project or purpose. The response provided indicated that the interest payment should be considered a revenue expenditure.