https://www.taxtmi.com/caselaws?id=7760 The article explains that, for depreciation and development rebate purposes, "actual cost" covers expenditure directly and intimately connected with acquisition and installation of machinery, such as freight, transport, erection and supervision. It distinguishes interest on borrowed capital used to finance the purchase: that interest is paid on the borrowing itself and is not part of the machinery's acquisition or installation cost. It also notes that accounting practice allowing capitalisation of interest cannot override the statutory language, and that where Parliament intended interest deductions or treatment, it provided for them expressly. On that reasoning, interest on borrowed capital is excluded from actual cost. 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 The article explains that, for depreciation and development rebate purposes, "actual cost" covers expenditure directly and intimately connected with acquisition and installation of machinery, such as freight, transport, erection and supervision. It distinguishes interest on borrowed capital used to finance the purchase: that interest is paid on the borrowing itself and is not part of the machinery's acquisition or installation cost. It also notes that accounting practice allowing capitalisation of interest cannot override the statutory language, and that where Parliament intended interest deductions or treatment, it provided for them expressly. On that reasoning, interest on borrowed capital is excluded from actual cost. Case-Laws Income Tax Fri, 05 Sep 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7760