https://www.taxtmi.com/caselaws?id=37592 Interest paid on share capital raised for construction purposes, where statutorily sanctioned, remained distinct from dividend and did not require a reference on that characterization issue; the revenue failed on that point. Capitalised pre-production interest incurred to finance construction of fixed assets was treated as part of the actual cost of plant and machinery because it was expenditure necessary to bring the assets into existence and working condition. Depreciation was therefore allowable on the enhanced cost, and the reference was answered for the assessee on the capitalisation issue. en-us Tue, 09 Jan 1979 00:00:00 +0530 Tue, 30 Mar 2010 16:58:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37592 Interest paid on share capital raised for construction purposes, where statutorily sanctioned, remained distinct from dividend and did not require a reference on that characterization issue; the revenue failed on that point. Capitalised pre-production interest incurred to finance construction of fixed assets was treated as part of the actual cost of plant and machinery because it was expenditure necessary to bring the assets into existence and working condition. Depreciation was therefore allowable on the enhanced cost, and the reference was answered for the assessee on the capitalisation issue. Case-Laws Income Tax Tue, 09 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37592