Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 400 - HC - Income TaxDisallowance of Interest u/s 36(1)(iii) - Capital expenditure or Revenue Expenditure - Held that:- Section 36(1)(ii) of the Act makes no distinction between money borrowed to acquire a capital asset or a revenue asset and that all that the section requires is that that the assessee must borrow capital and the purpose of borrowing must be for business which is carried on by the assessee in the year of account. - amount was revenue expenditure allowable u/s. 36(1)(iii) of the IT Act 1961 and further in allowing the claim of the assessee for the deduction of the said amount u/s 36(1)(iii) of the Act, when the interest attributable till the asset is put to use for the first time is required to be included in the actual cost as per Section 43 of the Act. - Following decision of Commissioner of Income Tax vs. Core Health Care Ltd. reported in [2008 (2) TMI 8 - SUPREME COURT OF INDIA] - Decided against Revenue.
|