https://www.taxtmi.com/caselaws?id=11737 Interest capitalised as part of the purchase price under a deferred payment arrangement could not be included in the actual cost of machinery for depreciation purposes. Explanation 8 to section 43(1) was applied broadly to exclude any amount paid as interest in connection with acquisition of an asset from actual cost, and the seller's invoicing method, including a consolidated bill, did not change the true character of the payment. Earlier interpretations of Explanation 8 were followed, and the interest component was held not to form part of the depreciable cost. en-us Tue, 03 Dec 2002 00:00:00 +0530 Sun, 07 Feb 2010 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11737 Interest capitalised as part of the purchase price under a deferred payment arrangement could not be included in the actual cost of machinery for depreciation purposes. Explanation 8 to section 43(1) was applied broadly to exclude any amount paid as interest in connection with acquisition of an asset from actual cost, and the seller's invoicing method, including a consolidated bill, did not change the true character of the payment. Earlier interpretations of Explanation 8 were followed, and the interest component was held not to form part of the depreciable cost. Case-Laws Income Tax Tue, 03 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11737