Assessee's Interest Deduction Claim Denied; Interest Must Be Capitalized as Project Cost per Accounting Standards 7 and 16.

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....Deduction of interest expenditure of INR u/s 36(1)(iii) - the Assessee has undertaken only one redevelopment project. It is not disputed that interest cost is directly related to the project As per Accounting Standards 7 on Construction Contracts and Accounting Standard 16 on Borrowing Cost, the borrowing cost having direct nexus with the project needs to be treated as project cost and capitalized. - AT....