https://www.taxtmi.com/caselaws?id=788262 Where a developer acquires land as part of ordinary business inventory and capitalises interest as work in progress, the proviso to Section 36(1)(iii) (the put to use limitation) applies to capital assets and does not disallow interest referable to inventory; accordingly the disallowance of interest was reversed. Additions computed suo motu from survey statements without rejecting audited books or affording the assessee a reasonable opportunity to explain were held arbitrary and deleted. Treatment of four parking spaces requires factual verification of contemporaneous records; that issue is remitted to the Assessing Officer for de novo adjudication after giving the assessee opportunity to be heard. en-us Mon, 16 Mar 2026 00:00:00 +0530 Thu, 19 Mar 2026 08:59:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788262 Where a developer acquires land as part of ordinary business inventory and capitalises interest as work in progress, the proviso to Section 36(1)(iii) (the put to use limitation) applies to capital assets and does not disallow interest referable to inventory; accordingly the disallowance of interest was reversed. Additions computed suo motu from survey statements without rejecting audited books or affording the assessee a reasonable opportunity to explain were held arbitrary and deleted. Treatment of four parking spaces requires factual verification of contemporaneous records; that issue is remitted to the Assessing Officer for de novo adjudication after giving the assessee opportunity to be heard. Case-Laws Income Tax Mon, 16 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788262