https://www.taxtmi.com/caselaws?id=7760 Interest paid on borrowed capital used to acquire and install machinery before business commencement does not form part of the asset's actual cost for depreciation or development rebate. Actual cost covers expenditure directly and intimately connected with acquiring and installing the asset, including freight, transport, erection and supervision. Interest is paid for the borrowing rather than for acquisition or installation and therefore lacks the required direct connection. Accounting practices allowing interest capitalisation cannot override the statutory meaning of actual cost. Specific statutory deductions for interest elsewhere further indicate that interest is allowable only where expressly provided. en-us Fri, 05 Sep 1969 00:00:00 +0530 Wed, 18 Mar 2009 18:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7760 Interest paid on borrowed capital used to acquire and install machinery before business commencement does not form part of the asset's actual cost for depreciation or development rebate. Actual cost covers expenditure directly and intimately connected with acquiring and installing the asset, including freight, transport, erection and supervision. Interest is paid for the borrowing rather than for acquisition or installation and therefore lacks the required direct connection. Accounting practices allowing interest capitalisation cannot override the statutory meaning of actual cost. Specific statutory deductions for interest elsewhere further indicate that interest is allowable only where expressly provided. Case-Laws Income Tax Fri, 05 Sep 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7760