Tribunal held that as the business of the assessee had already commenced in the assessment year 2006-07, the interest expenditure and all other expenses both administrative and other expenses were to be allowed as business expenditure. The interest income was to be taxed as business income and the interest expenditure was to be set off against the business income. During the year 2007-08, The Assessee had capitalised interest expenditure of Rs. 40.78 Corers. Hence, there was no issue of its allowability.( AY.2007-08)
Jindal Reality Pvt. Ltd. v. Dy. CIT (2020)82 ITR 19 (SN) (Delhi) (Trib)
S. 37(1) : Business expenditure – Set up of business – Interest , administrative and other expenses is held to be allowable as deduction – Interest income is to be assessed as business income and interest expenditure to be set off against it. [ S.28(i) , 56 , 57 ]