https://www.taxtmi.com/caselaws?id=3017 The High Court ruled in favor of the revenue, holding that interest paid on borrowed capital for setting up a new unit before it commences production should be capitalized and added to the cost of the asset. This decision overruled the earlier judgment in Punjab Alkalies and Chemicals Ltd. and aligned with the principles established in Challapalli Sugars Ltd. The Court emphasized the need to read Sections 36(1)(iii) and 43(1) together to ensure the accurate determination of the actual cost of assets and the proper computation of business profits. en-us Mon, 21 Jan 2008 00:00:00 +0530 Thu, 21 Apr 2016 16:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3017 The High Court ruled in favor of the revenue, holding that interest paid on borrowed capital for setting up a new unit before it commences production should be capitalized and added to the cost of the asset. This decision overruled the earlier judgment in Punjab Alkalies and Chemicals Ltd. and aligned with the principles established in Challapalli Sugars Ltd. The Court emphasized the need to read Sections 36(1)(iii) and 43(1) together to ensure the accurate determination of the actual cost of assets and the proper computation of business profits. Case-Laws Income Tax Mon, 21 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3017