Intas Pharmaceuticals Ltd. v. ACIT (2024)114 ITR 434 (Ahd)(Trib)

S. 36(1)(iii) :Interest on borrowed capital-Capital expenditure on plant and machinery, electrical installation and other fixed assets-Accounted as capital work-in-progress-Disallowance of interest is not warranted.

Held that where huge funds were available with the assessee without any interest liability and there was no evidence to hold that borrowed money was utilised for the purpose of making capital work-in-progress advances, no disallowance of interest was warranted. There was no infirmity in the order of the Commissioner (Appeals). (AY.2009-10, 2010-11, 2011-12)

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