Dismissing the appeal of the revenue the Court held that interest paid on borrowings for setting up of Agro Gas plant , though capitalised in the books of account is held to be allowable as deduction .  Followed CIT v. Core Health Care Ltd  ( 2008) 298 ITR 194/167 Taxman 206 (SC)  (ITA No 51 of 2008 dt 22-11-2019 / 2 -01 2020) (AY.1995 -96)