Allowing the appeal of the assessee, loan for reconstruction or renovation of its existing cold storage which was destroyed by fire, could not be considered as acquisition of an asset. Interest paid is held to be allowable. (AY. 2010-11)
K.S. Cold Storage v. ACIT (2019) 174 ITD 485 / 175 DTR 433/ 198 TTJ 905(Pune)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital – Loan for reconstruction or renovation of its existing cold storage which was destroyed by fire, could not be considered as acquisition of an asset- Interest is held to be allowable .