1987 (8) TMI 161 - AT - Income Tax

Summary

The judgment by Appellate Tribunal ITAT MADRAS-A Citation: 1987 (8) TMI 161 - ITAT MADRAS-A involved a dispute regarding capitalization of interest charges on plant and machinery purchased under deferred payment terms. The assessee argued that interest charges up to the date of setting up the plant should be capitalized as part of the cost, citing an amendment to the Income-tax Act. The Revenue contended that interest charges should be treated as revenue expenditure. The Tribunal upheld the assessee's position based on the legislative intent and a Supreme Court decision, confirming the order of the CIT (Appeals) on this point.