https://www.taxtmi.com/caselaws?id=244249 Mere advances paid to suppliers, contractors and land sellers for proposed future capital expenditure do not form part of capital work-in-progress where no actual expenditure has been incurred, no bills have been raised, and no liability has crystallised. In such circumstances, exclusion of the advances from capital work-in-progress is justified. For section 14A disallowance, interest under Rule 8D(ii) is unsustainable where borrowed funds were used for the hotel project and not for investments, but administrative expenditure may still be disallowed under Rule 8D(iii) for the relevant year. The result is partial relief through deletion of the interest component, with the balance sustained. en-us Wed, 19 Feb 2014 00:00:00 +0530 Fri, 21 Feb 2014 11:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244249 Mere advances paid to suppliers, contractors and land sellers for proposed future capital expenditure do not form part of capital work-in-progress where no actual expenditure has been incurred, no bills have been raised, and no liability has crystallised. In such circumstances, exclusion of the advances from capital work-in-progress is justified. For section 14A disallowance, interest under Rule 8D(ii) is unsustainable where borrowed funds were used for the hotel project and not for investments, but administrative expenditure may still be disallowed under Rule 8D(iii) for the relevant year. The result is partial relief through deletion of the interest component, with the balance sustained. Case-Laws Income Tax Wed, 19 Feb 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244249