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2004 (10) TMI 53 - HC - Income TaxInterest paid on the borrowed capital under a deferred payment scheme for acquisition of plants and machineries - benefit of section 36(1)(iii) or section 37 – Held that the interest paid on the borrowed capital under the deferred payment scheme for the period relevant till the asset was first put to use would not be eligible for deduction under section 36(1)(iii) or section 37 since it is includible in the actual cost of acquisition of the asset till the asset was first put to use, in view of Explanation 8 to section 43(1) - Once the same comes within the purview of section 43(1), Explanation 8, deduction under section 36(1)(iii) or 37 cannot be claimed which stands clarified by the insertion of the proviso therein under the Finance Act, 2003. As such the assessee cannot claim any benefit of section 36(1)(iii) or section 37 in this case – appeal of assessee is dismissed
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