https://www.taxtmi.com/caselaws?id=2046 The High Court held that interest paid under a deferred payment scheme for acquiring assets is not capital in nature and thus not eligible for investment allowance. The Court ruled against the assessee, emphasizing that such interest cannot be included in the actual cost for investment allowance as it is distinct from interest on capital borrowed post-business commencement, as per Explanation 8 to section 43(1) of the Income-tax Act, 1961. The decision favored the Revenue's stance over the assessee's claim. en-us Tue, 06 Feb 2007 00:00:00 +0530 Sat, 02 Aug 2008 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2046 The High Court held that interest paid under a deferred payment scheme for acquiring assets is not capital in nature and thus not eligible for investment allowance. The Court ruled against the assessee, emphasizing that such interest cannot be included in the actual cost for investment allowance as it is distinct from interest on capital borrowed post-business commencement, as per Explanation 8 to section 43(1) of the Income-tax Act, 1961. The decision favored the Revenue's stance over the assessee's claim. Case-Laws Income Tax Tue, 06 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2046