https://www.taxtmi.com/news?id=295 The core dispute is whether interest on borrowings made for business purposes but used to acquire capital assets not yet put to use is deductible under Section 36(1)(iii) or must be capitalized under Explanation 8 to Section 43(1). The Supreme Court allowed deduction where the borrowing was for business purposes, treating Section 36(1)(iii) as self-contained; the Punjab & Haryana High Court disallowed deduction and required capitalization of such interest until the asset is first put to use. en-us Tue, 19 Feb 2008 10:49:00 +0530 Fri, 22 Aug 2025 17:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=295 The core dispute is whether interest on borrowings made for business purposes but used to acquire capital assets not yet put to use is deductible under Section 36(1)(iii) or must be capitalized under Explanation 8 to Section 43(1). The Supreme Court allowed deduction where the borrowing was for business purposes, treating Section 36(1)(iii) as self-contained; the Punjab & Haryana High Court disallowed deduction and required capitalization of such interest until the asset is first put to use. News - Tue, 19 Feb 2008 10:49:00 +0530 https://www.taxtmi.com/news?id=295