https://www.taxtmi.com/caselaws?id=471509 Depreciation is allowable on moulds and tools where expenditure initially claimed as revenue is capitalised and no depreciation has previously been allowed on that cost. Interest-related disallowance against exempt income is unwarranted where own funds exceed the investments generating exempt income, as borrowed funds cannot be presumed to have financed those investments. Refundable distributor deposits do not reduce the actual cost of freezers for depreciation because they are neither reimbursements of the asset cost nor subsidies. Accordingly, depreciation applies to the capitalised moulds and tools and the full freezer cost, without an exempt-income interest disallowance. en-us Tue, 08 Apr 2025 00:00:00 +0530 Mon, 07 Sep 2026 19:20:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471509 Depreciation is allowable on moulds and tools where expenditure initially claimed as revenue is capitalised and no depreciation has previously been allowed on that cost. Interest-related disallowance against exempt income is unwarranted where own funds exceed the investments generating exempt income, as borrowed funds cannot be presumed to have financed those investments. Refundable distributor deposits do not reduce the actual cost of freezers for depreciation because they are neither reimbursements of the asset cost nor subsidies. Accordingly, depreciation applies to the capitalised moulds and tools and the full freezer cost, without an exempt-income interest disallowance. Case-Laws Income Tax Tue, 08 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471509