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Challapalli Sugar Ltd vs The Commissioner Of Income Tax, A.P. ... on 31 October, 1974

4. The views of the Research Committee with regard to the treatment of interest paid during the construction period have been judicially considered and approved by the Supreme Court of India in the case of Challapalli Sugars Ltd. v. CIT [1975] 98 ITR 167 (SC). It is, therefore, a well recognised principle that interest paid before the commencement of production on amounts borrowed by the assessee for the acquisition and installation of plant and machinery forms part of the 'actual cost' of the asset for the purpose of claiming depreciation, development rebate, investment allowance, etc., under the Income-tax Act.
Supreme Court of India Cites 28 - Cited by 416 - H R Khanna - Full Document

Sivakami Mills Ltd. vs Commissioner Of Income-Tax on 27 February, 1979

31. IT A No. 273/Mds/85 : We allow the actual cost to be taken without deduction of interest. There is another claim for deduction of guarantee commission paid in respect of the purchase of the capital asset as a revenue expenditure. This claim has to be allowed in view of the decision of the Madras High Court in the case of Sivakami Mills Ltd. v. CIT [1979] 120 ITR 211. This appeal is allowed.
Madras High Court Cites 16 - Cited by 43 - Full Document
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