https://www.taxtmi.com/caselaws?id=255201 The Court held in favor of the assessees, affirming the ITAT's decision to delete the disallowance of interest on borrowings under Section 36(1)(iii) of the Income Tax Act, 1961. It clarified that borrowed capital used for business purposes qualifies as revenue expenditure, regardless of the purpose of borrowing. The Court also ruled that interest attributable to the period before an asset is put to use should not be included in the asset's actual cost. The appeals were dismissed, and the ITAT's orders were upheld. en-us Thu, 18 Dec 2014 00:00:00 +0530 Sat, 10 Jan 2015 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255201 The Court held in favor of the assessees, affirming the ITAT's decision to delete the disallowance of interest on borrowings under Section 36(1)(iii) of the Income Tax Act, 1961. It clarified that borrowed capital used for business purposes qualifies as revenue expenditure, regardless of the purpose of borrowing. The Court also ruled that interest attributable to the period before an asset is put to use should not be included in the asset's actual cost. The appeals were dismissed, and the ITAT's orders were upheld. Case-Laws Income Tax Thu, 18 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255201