https://www.taxtmi.com/caselaws?id=17756 Interest earned during construction was treated as part of the project financing exercise, and the governing principle stated that interest incurred before commencement of production on borrowings used to create fixed assets may be capitalised and added to project cost, unless the borrowing is for working capital. Applying that principle and an earlier binding decision on the same issue, the Court held that the interest received had to be adjusted against interest payments, with only the balance capitalised. The issue was answered against the assessee and in favour of the Revenue. en-us Wed, 28 Aug 1996 00:00:00 +0530 Thu, 24 Sep 2009 16:05:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17756 Interest earned during construction was treated as part of the project financing exercise, and the governing principle stated that interest incurred before commencement of production on borrowings used to create fixed assets may be capitalised and added to project cost, unless the borrowing is for working capital. Applying that principle and an earlier binding decision on the same issue, the Court held that the interest received had to be adjusted against interest payments, with only the balance capitalised. The issue was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Wed, 28 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17756