https://www.taxtmi.com/caselaws?id=364578 The Tribunal upheld the CIT(A)'s decision, allowing the interest expenditure as a revenue expense under section 36(1)(iii) of the Income Tax Act. It emphasized that the borrowed funds were used for business purposes, specifically for backward integration to reduce power costs for the pharmaceutical business. The Tribunal dismissed the Revenue's appeals, stating that the interest on borrowed capital for the captive power plant was deductible, regardless of the plant's operational status or the subsequent intention to divest. en-us Wed, 20 Jun 2018 00:00:00 +0530 Wed, 01 Aug 2018 06:49:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=364578 The Tribunal upheld the CIT(A)'s decision, allowing the interest expenditure as a revenue expense under section 36(1)(iii) of the Income Tax Act. It emphasized that the borrowed funds were used for business purposes, specifically for backward integration to reduce power costs for the pharmaceutical business. The Tribunal dismissed the Revenue's appeals, stating that the interest on borrowed capital for the captive power plant was deductible, regardless of the plant's operational status or the subsequent intention to divest. Case-Laws Income Tax Wed, 20 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=364578