https://www.taxtmi.com/caselaws?id=797849 Interest on borrowings used to acquire assets held as stock-in-trade or current assets for resale is deductible as business expenditure under Section 36(1)(iii). The proviso deferring deduction until an asset is put to use does not apply where assets are acquired for resale rather than for the taxpayer's own business operations. Acquisition-related expenditure is likewise deductible under Section 37(1) where it relates to stock-in-trade, not capital assets acquired for operational use. The treatment depends on the assets' business purpose and character as trading assets, making both interest and related acquisition expenditure revenue deductions. en-us Fri, 21 Aug 2026 00:00:00 +0530 Fri, 28 Aug 2026 20:42:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797849 Interest on borrowings used to acquire assets held as stock-in-trade or current assets for resale is deductible as business expenditure under Section 36(1)(iii). The proviso deferring deduction until an asset is put to use does not apply where assets are acquired for resale rather than for the taxpayer's own business operations. Acquisition-related expenditure is likewise deductible under Section 37(1) where it relates to stock-in-trade, not capital assets acquired for operational use. The treatment depends on the assets' business purpose and character as trading assets, making both interest and related acquisition expenditure revenue deductions. Case-Laws Income Tax Fri, 21 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797849