https://www.taxtmi.com/caselaws?id=446290 ITAT Delhi upheld CIT(A)'s decision allowing capitalization of interest paid to NOIDA Authority under project expenses. AO had disallowed the interest claiming it was penal in nature and not allowable under the Act. However, CIT(A) found after examining documentary evidence that the interest was not penal but related to delayed lease payment as per agreement terms at 3% of default amount. ITAT agreed the interest formed part of project cost and should be capitalized in work-in-progress rather than disallowed. Appeal decided against revenue. en-us Tue, 11 Jul 2023 00:00:00 +0530 Wed, 29 Nov 2023 18:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446290 ITAT Delhi upheld CIT(A)'s decision allowing capitalization of interest paid to NOIDA Authority under project expenses. AO had disallowed the interest claiming it was penal in nature and not allowable under the Act. However, CIT(A) found after examining documentary evidence that the interest was not penal but related to delayed lease payment as per agreement terms at 3% of default amount. ITAT agreed the interest formed part of project cost and should be capitalized in work-in-progress rather than disallowed. Appeal decided against revenue. Case-Laws Income Tax Tue, 11 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446290