https://www.taxtmi.com/caselaws?id=310128 In a mixed-funds situation, interest disallowance for funds diverted to an exempt unit was required to be recomputed by reference to the assessee's average cost of debt, not the borrowing rate alone. Notional interest on capital work in progress also had to follow the average-cost basis, but no separate disallowance was warranted for fixed assets created and put to use within the year. Web/software development expenditure was treated as part of a depreciable computer software asset and depreciation was allowed accordingly. For section 80IC recomputation, common expenses had to be rationally allocated across units, while any further adjustment could not result in double disallowance of the same expenditure. en-us Mon, 23 Dec 2013 00:00:00 +0530 Sat, 07 Oct 2023 11:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310128 In a mixed-funds situation, interest disallowance for funds diverted to an exempt unit was required to be recomputed by reference to the assessee's average cost of debt, not the borrowing rate alone. Notional interest on capital work in progress also had to follow the average-cost basis, but no separate disallowance was warranted for fixed assets created and put to use within the year. Web/software development expenditure was treated as part of a depreciable computer software asset and depreciation was allowed accordingly. For section 80IC recomputation, common expenses had to be rationally allocated across units, while any further adjustment could not result in double disallowance of the same expenditure. Case-Laws Income Tax Mon, 23 Dec 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310128