Capitalisation of interest.

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.... claim of investment allowance and depreciation on the total of the principal cost and the capitalised amount of such interest. The pre-commencement interest is quite distinct in character from the post commencement interest. Whereas interest of the former nature forms part of the cost of assets, the latter bears the character of revenue expenditure incidental to the running of business, the board....

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....he distinction between the two types of interest referred to above are doing so obviously for claiming investment allowance over and above the depreciation on such capitalised amount of future interest which otherwise would not have been allowable. Besides by virtue of such capitalisation the claim of depreciation is enhanced in the initial years so as to wipe off eventually the whole of the profi....