https://www.taxtmi.com/caselaws?id=37238 The High Court of Karnataka ruled that interest paid on borrowed money for constructing a new factory building is deductible as revenue expenditure, even if the building was not yet in use for business purposes during the accounting year. This decision was based on the precedent set by a previous ruling in Ravi Machine Tools (P.) Ltd. v. CIT [1978] 114 ITR 459(Kar). The court sided with the assessee, overturning the initial disallowance of the deduction by the Income Tax Officer and the Appellate Assistant Commissioner. en-us Fri, 12 Jan 1979 00:00:00 +0530 Sat, 27 Mar 2010 15:51:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37238 The High Court of Karnataka ruled that interest paid on borrowed money for constructing a new factory building is deductible as revenue expenditure, even if the building was not yet in use for business purposes during the accounting year. This decision was based on the precedent set by a previous ruling in Ravi Machine Tools (P.) Ltd. v. CIT [1978] 114 ITR 459(Kar). The court sided with the assessee, overturning the initial disallowance of the deduction by the Income Tax Officer and the Appellate Assistant Commissioner. Case-Laws Income Tax Fri, 12 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37238