https://www.taxtmi.com/caselaws?id=6432 Pre-production interest on borrowed money used to acquire and install machinery and plant is included in the asset's actual cost for depreciation and development rebate, because actual cost is understood in commercial terms and covers expenditure needed to bring the fixed asset into working condition. Wealth-tax deduction in business income is confined by the saving clause to wealth-tax actually paid, not merely payable, so the broader claim for amounts not paid fails. The result is that capitalised pre-commencement interest is allowed for tax purposes, while wealth-tax relief is limited to tax actually paid. en-us Thu, 31 Oct 1974 00:00:00 +0530 Fri, 16 Jan 2026 18:16:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6432 Pre-production interest on borrowed money used to acquire and install machinery and plant is included in the asset's actual cost for depreciation and development rebate, because actual cost is understood in commercial terms and covers expenditure needed to bring the fixed asset into working condition. Wealth-tax deduction in business income is confined by the saving clause to wealth-tax actually paid, not merely payable, so the broader claim for amounts not paid fails. The result is that capitalised pre-commencement interest is allowed for tax purposes, while wealth-tax relief is limited to tax actually paid. Case-Laws Income Tax Thu, 31 Oct 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6432