https://www.taxtmi.com/caselaws?id=21866 The court held that interest payments on deferred liabilities for the purchase of business assets should be treated as revenue expenditure, not capital expenditure. The court emphasized that such interest should not be added to the actual cost of the asset for depreciation and development rebate purposes. Additionally, the court clarified that interest paid after the asset is put to use should not be included in the asset's actual cost. However, interest payments on loans and related expenses prior to the delivery of ships were deemed includible in the actual cost of the ships for claiming development rebate, contrary to the treatment of deferred liabilities. en-us Thu, 16 Jan 1992 00:00:00 +0530 Wed, 02 Dec 2009 16:25:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21866 The court held that interest payments on deferred liabilities for the purchase of business assets should be treated as revenue expenditure, not capital expenditure. The court emphasized that such interest should not be added to the actual cost of the asset for depreciation and development rebate purposes. Additionally, the court clarified that interest paid after the asset is put to use should not be included in the asset's actual cost. However, interest payments on loans and related expenses prior to the delivery of ships were deemed includible in the actual cost of the ships for claiming development rebate, contrary to the treatment of deferred liabilities. Case-Laws Income Tax Thu, 16 Jan 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21866