https://www.taxtmi.com/caselaws?id=11266 The High Court of MADRAS ruled in favor of the Revenue, determining that the interest paid on a deposit of Rs. 15 lakhs by a partnership firm with an assessee-company for a construction project in Bangalore was a legitimate part of the project cost for the assessment year 1984-85. Despite being termed a security deposit, the interest was considered an expenditure solely related to the project, following accounting standards that finance costs related to specific contracts should be included in project costs. The Court emphasized the project-specific nature of finance costs and their necessary inclusion in project expenses. en-us Mon, 08 Dec 2003 00:00:00 +0530 Mon, 03 Aug 2009 12:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11266 The High Court of MADRAS ruled in favor of the Revenue, determining that the interest paid on a deposit of Rs. 15 lakhs by a partnership firm with an assessee-company for a construction project in Bangalore was a legitimate part of the project cost for the assessment year 1984-85. Despite being termed a security deposit, the interest was considered an expenditure solely related to the project, following accounting standards that finance costs related to specific contracts should be included in project costs. The Court emphasized the project-specific nature of finance costs and their necessary inclusion in project expenses. Case-Laws Income Tax Mon, 08 Dec 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11266