https://www.taxtmi.com/caselaws?id=189794 In a cost-plus construction contract, the completed contract approach was applied to recognise contractual profit on completion, rather than allowing deferment merely because the project was unsold or further amenities might later be required. The commentary also treats project-specific interest on borrowed funds as part of contract costs where it is identifiable with the incomplete project, so it must be accumulated and matched with revenue when the project is completed, not deducted as annual revenue expenditure. On that basis, income from the construction work and the related finance cost are both brought into account only on completion of the contract work. en-us Thu, 31 Oct 1996 00:00:00 +0530 Fri, 20 Jan 2017 16:51:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189794 In a cost-plus construction contract, the completed contract approach was applied to recognise contractual profit on completion, rather than allowing deferment merely because the project was unsold or further amenities might later be required. The commentary also treats project-specific interest on borrowed funds as part of contract costs where it is identifiable with the incomplete project, so it must be accumulated and matched with revenue when the project is completed, not deducted as annual revenue expenditure. On that basis, income from the construction work and the related finance cost are both brought into account only on completion of the contract work. Case-Laws Income Tax Thu, 31 Oct 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189794