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Capitalization of Customs duty paid in fourth year.


The Assessee had imported a machine in F.Y.2015-16 and taken the benefit of EPCG scheme, got exemption from Basic Customs duty and Cess under the scheme. But in F.Y.19-20 the conditions of export obligation were not fulfilled and the Assessee has to pay Customs duty of 1,12,00,000/- along with Interest of Rs.67,20,000/-.
My questions are,
1) Is that interest amount of Rs.67,20,000/- allowed as expenditure under Income Tax Act.
2) Can I Capitalise the Customs duty paid in the 4th year, if so as per which provisions of PPE as already Asset was put to use 4 years back.



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