https://www.taxtmi.com/caselaws?id=798814 Interest expenditure on borrowings used for business purposes is deductible under Section 36(1)(iii), subject to the proviso restricting deduction until an acquired asset is first put to use. Open land used as a storage yard for bulky trading stock was supported by delivery, unloading, electricity and photographic evidence. Capital work-in-progress for an additional structure on part of the land did not negate business use of the remaining area. Where no borrowing or interest amount is directly attributable to incomplete construction, and capital plus interest-free loans sufficiently cover the land cost, the investment is presumed to be from interest-free funds. The interest disallowance was therefore deleted. en-us Tue, 08 Sep 2026 00:00:00 +0530 Sat, 12 Sep 2026 08:41:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798814 Interest expenditure on borrowings used for business purposes is deductible under Section 36(1)(iii), subject to the proviso restricting deduction until an acquired asset is first put to use. Open land used as a storage yard for bulky trading stock was supported by delivery, unloading, electricity and photographic evidence. Capital work-in-progress for an additional structure on part of the land did not negate business use of the remaining area. Where no borrowing or interest amount is directly attributable to incomplete construction, and capital plus interest-free loans sufficiently cover the land cost, the investment is presumed to be from interest-free funds. The interest disallowance was therefore deleted. Case-Laws Income Tax Tue, 08 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798814