https://www.taxtmi.com/caselaws?id=797290 Interest on borrowed capital incurred after completion of a real estate project and issuance of the occupation certificate is revenue expenditure where unsold flats are finished stock-in-trade ready for sale. Borrowing costs incurred up to project completion form part of construction cost, but capitalisation ends when the units are ready for sale. Section 40(a)(ia) does not require deferral of an otherwise allowable interest deduction until the flats are sold. Once tax is deducted and paid in accordance with its proviso, the interest is deductible in that previous year. en-us Mon, 20 Jul 2026 00:00:00 +0530 Thu, 20 Aug 2026 08:14:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797290 Interest on borrowed capital incurred after completion of a real estate project and issuance of the occupation certificate is revenue expenditure where unsold flats are finished stock-in-trade ready for sale. Borrowing costs incurred up to project completion form part of construction cost, but capitalisation ends when the units are ready for sale. Section 40(a)(ia) does not require deferral of an otherwise allowable interest deduction until the flats are sold. Once tax is deducted and paid in accordance with its proviso, the interest is deductible in that previous year. Case-Laws Income Tax Mon, 20 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797290