2000 (11) TMI 31

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.... BABU J.--The question referred is as to whether, on the facts and in the circumstances of the case, and having regard to the provisions of sections 48 and 55(2) of the Income-tax Act, 1961, the Tribunal was right in holding that the mortgage expenses incurred in connection with the acquisition of the property and the interest payable on the mortgaged amounts which have been utilised as part of th....

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.... for the purpose of paying a part of the consideration for the sale and for meeting the cost of the stamp papers. The assessee claimed that the cost of execution of the mortgage as also the amount of interest paid to the mortgagee till the date of the sale of the property, a part of which was sold in the assessment year 1973-74 and the remaining part in the assessment year 1974-75, was required....

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....le for determining cost of fixed assets is to include all expenditure necessary to bring such assets into existence and to put them in working condition. In case money is borrowed by a newly started company which is in the process of constructing and erecting its plant, the interest incurred before the commencement of production on such borrowed money can be capitalised and added to the cost of th....