Interest Expenditure Disallowance u/s 36(1)(iii) Applies Only to Capital Assets, Not Inventory Purchases.

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....Interest expenditure disallowance u/s 36(1)(iii) - The term ‘put to use’ applies to capital asset only because capital asset is held to facilitate the business activity and sometimes it needs to be prepared after its acquisition for being used to facilitate business activity. As against this, purchase and holding of inventory itself is a business activity. - AT....