Held that the Assessing Officer had worked out the disallowance based on the closing balance of the capital work-in-progress at the rate of 12 per cent. While doing so, the Assessing Officer had ignored the availability of the assessee’s own funds and had wrongly assumed that the addition to the capital work-in-progress was entirely out of borrowed funds. Addition is deleted. (AY.2013-14)
Gujarat Infrapipes P. Ltd. v. Dy. CIT (2024)111 ITR 47 (SN)(Ahd)(Trib)
S. 36(1)(iii) :Interest on borrowed capital-Work-in-progress-Out of own funds and borrowed funds-Disallowance is deleted.