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2018 (1) TMI 1588 - AT - Income TaxCapitalization of interest expenses - loan has been taken to invest in capital asset - HELD THAT:- CIT(A) has only accepted the alternative claim of the assessee and allowed capitalization of interest expenditure since no business activity was carried out by the assessee during impugned AY. AO, in paragraph 3.2 of the quantum assessment order has also expressed similar view. Regarding rate of interest of 32%, the revenue could not point out how the same was excessive or unreasonable in the circumstances. The other expenditure of ₹ 41,900/-, being administrative in nature and incurred to maintain the corporate identity has rightly been allowed as revenue expenditure. Finding no strength in revenue’s appeal, we dismiss the same.
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