https://www.taxtmi.com/caselaws?id=66406 The Tribunal ruled in favor of the assessee, directing the exclusion of the entire amount of Rs. 19,900 from taxation. It held that interest income and miscellaneous receipts should offset the capital expenditure incurred during the construction period. The Tribunal considered the principles established in Challapalli Sugars Ltd. v. CIT [1975] 98 ITR 167 and found a direct nexus between borrowed funds and deposited funds, allowing for the net interest outgoing to be considered for capitalization. The appeal was allowed, and previous conflicting decisions were distinguished, leading to the exclusion of the amount from taxation. en-us Mon, 01 Jun 1981 00:00:00 +0530 Thu, 24 Feb 2011 15:33:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66406 The Tribunal ruled in favor of the assessee, directing the exclusion of the entire amount of Rs. 19,900 from taxation. It held that interest income and miscellaneous receipts should offset the capital expenditure incurred during the construction period. The Tribunal considered the principles established in Challapalli Sugars Ltd. v. CIT [1975] 98 ITR 167 and found a direct nexus between borrowed funds and deposited funds, allowing for the net interest outgoing to be considered for capitalization. The appeal was allowed, and previous conflicting decisions were distinguished, leading to the exclusion of the amount from taxation. Case-Laws Income Tax Mon, 01 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66406