https://www.taxtmi.com/caselaws?id=472228 Interest on borrowings used for real-estate project work-in-progress is deductible where the developer follows the percentage-completion method: project work-in-progress is stock-in-trade, not an asset acquired for business extension and first put to use, so the proviso to Section 36(1)(iii) does not require capitalisation. For a temporary advance to a group concern, disallowance is limited to interest actually charged to profit and loss, particularly where interest-free funds substantially financed the advance. Any non-allowable interest must be removed from project work-in-progress to prevent a later deduction as project cost when revenue is recognised. en-us Wed, 26 Oct 2022 00:00:00 +0530 Mon, 05 Oct 2026 18:29:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472228 Interest on borrowings used for real-estate project work-in-progress is deductible where the developer follows the percentage-completion method: project work-in-progress is stock-in-trade, not an asset acquired for business extension and first put to use, so the proviso to Section 36(1)(iii) does not require capitalisation. For a temporary advance to a group concern, disallowance is limited to interest actually charged to profit and loss, particularly where interest-free funds substantially financed the advance. Any non-allowable interest must be removed from project work-in-progress to prevent a later deduction as project cost when revenue is recognised. Case-Laws Income Tax Wed, 26 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472228