https://www.taxtmi.com/caselaws?id=777455 ITAT held in favor of the taxpayer, deleting the addition made by AO and sustained by CIT(A) for premium on forward contracts. Tribunal found no basis to capitalize the hedge premium as a capital expenditure under s.36(1)(iii); only interest attributable to pre-use period requires capitalization, whereas interest after asset put to use is deductible. The premium paid to hedge exchange fluctuation on interest was revenue in nature and its disallowance was unjustified, so the addition was deleted. en-us Fri, 10 Jan 2025 00:00:00 +0530 Fri, 29 Aug 2025 08:57:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777455 ITAT held in favor of the taxpayer, deleting the addition made by AO and sustained by CIT(A) for premium on forward contracts. Tribunal found no basis to capitalize the hedge premium as a capital expenditure under s.36(1)(iii); only interest attributable to pre-use period requires capitalization, whereas interest after asset put to use is deductible. The premium paid to hedge exchange fluctuation on interest was revenue in nature and its disallowance was unjustified, so the addition was deleted. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777455