Dismissing the appeal of the revenue the Court held that , when the assessee has followed the accounting standard , interest on borrowed capital cannot be disallowed on the ground that , interest on borrowings was included in closing work in progress .( AY. 2012-13)
PCIT v. Milroc Good Earth Property & Developers LLP ( 2018) 256 Taxman 257 ( Bom) (HC)
S. 36(1)(iii) :Interest on borrowed capital -Development and construction of residential building -Followed Accounting Standard- Disallowance of interest is not justified on the ground that interest on borrowings was included in closing work in progress .[ S.145 ]