https://www.taxtmi.com/caselaws?id=13963 HC dismissed the appeals and upheld the Tribunal's allowance of interest under s.36(1)(iii) on borrowings for acquisition of machinery even though the machinery was not yet put to use or production. The court held that s.36(1)(iii) permits deduction of interest on capital borrowed for business purposes without a temporal cut-off before asset use; capitalisation in books does not preclude the deduction. Explanation 8 to s.43(1) does not curtail s.36(1)(iii). Section 37 was inapplicable to capital expenditure, so the interest was deductible while computing business income. en-us Wed, 25 Apr 2001 00:00:00 +0530 Fri, 03 Oct 2025 21:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13963 HC dismissed the appeals and upheld the Tribunal's allowance of interest under s.36(1)(iii) on borrowings for acquisition of machinery even though the machinery was not yet put to use or production. The court held that s.36(1)(iii) permits deduction of interest on capital borrowed for business purposes without a temporal cut-off before asset use; capitalisation in books does not preclude the deduction. Explanation 8 to s.43(1) does not curtail s.36(1)(iii). Section 37 was inapplicable to capital expenditure, so the interest was deductible while computing business income. Case-Laws Income Tax Wed, 25 Apr 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13963