https://www.taxtmi.com/caselaws?id=16364 The court ruled in favor of the Revenue, affirming that the interest paid on the deferred purchase consideration cannot be included in the asset's cost for depreciation or deduction claims. The decision was based on Explanation 8 to section 43(1) of the Income-tax Act, which dictates that such interest payments are to be treated as revenue expenditure. The court emphasized the importance of this statutory provision in determining the nature of deferred interest payments, ultimately denying the company's claim for capitalization. en-us Tue, 25 Mar 1997 00:00:00 +0530 Mon, 07 Sep 2009 12:51:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16364 The court ruled in favor of the Revenue, affirming that the interest paid on the deferred purchase consideration cannot be included in the asset's cost for depreciation or deduction claims. The decision was based on Explanation 8 to section 43(1) of the Income-tax Act, which dictates that such interest payments are to be treated as revenue expenditure. The court emphasized the importance of this statutory provision in determining the nature of deferred interest payments, ultimately denying the company's claim for capitalization. Case-Laws Income Tax Tue, 25 Mar 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16364