Held that as per Explanation 8 to section 43(1), interest paid shall be added in actual cost of asset till asset was first put to use for claiming depreciation. Accordingly the interest attributable from the date of trail run till date of commercial production allowable as revenue expenditure. Order of CIT (A) is affirmed. (AY. 2010-11)
ACIT v. Nilkanth Concast (P.) Ltd. (2021) 191 ITD 73 (Delhi)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Trial run-Interest attributable from the date of trail run till date of commercial production allowable as revenue expenditure. [S. 43(1), ICDS IX and AS-16]