https://www.taxtmi.com/caselaws?id=390565 Interest on borrowings used for business purposes was deductible as revenue expenditure even though the plant was not yet put to use, because the interest deduction provision does not distinguish between borrowings for capital and revenue purposes and Explanation 8 to actual cost does not control that deduction. The payment made to acquire mining rights to secure a long-term captive limestone supply was capital expenditure, since it obtained an enduring source of raw material and a right to win and extract minerals rather than a mere purchase of stock-in-trade. Relief was retained on the first issue and denied on the second. en-us Thu, 02 Jan 2020 00:00:00 +0530 Fri, 24 Jan 2020 17:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390565 Interest on borrowings used for business purposes was deductible as revenue expenditure even though the plant was not yet put to use, because the interest deduction provision does not distinguish between borrowings for capital and revenue purposes and Explanation 8 to actual cost does not control that deduction. The payment made to acquire mining rights to secure a long-term captive limestone supply was capital expenditure, since it obtained an enduring source of raw material and a right to win and extract minerals rather than a mere purchase of stock-in-trade. Relief was retained on the first issue and denied on the second. Case-Laws Income Tax Thu, 02 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390565