https://www.taxtmi.com/caselaws?id=26423 The court ruled against capitalizing net interest income annually, affirming that only gross interest should be capitalized for tax purposes. The judgment clarified that interest income, whether from borrowed money or capital, is taxable under the Income-tax Act. The court emphasized that the treatment of interest earned was not addressed in a previous Supreme Court decision cited by the Revenue. The decision aligned with the Revenue's contention that only gross interest should be capitalized, rejecting the argument that capitalizing net interest aligns with accounting principles. en-us Fri, 18 Jul 1986 00:00:00 +0530 Thu, 04 Feb 2010 18:32:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26423 The court ruled against capitalizing net interest income annually, affirming that only gross interest should be capitalized for tax purposes. The judgment clarified that interest income, whether from borrowed money or capital, is taxable under the Income-tax Act. The court emphasized that the treatment of interest earned was not addressed in a previous Supreme Court decision cited by the Revenue. The decision aligned with the Revenue's contention that only gross interest should be capitalized, rejecting the argument that capitalizing net interest aligns with accounting principles. Case-Laws Income Tax Fri, 18 Jul 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26423