Re. Interest on Borrowed Capital....Capitalised???
This query is : Resolved
CA Gaurav Makwana
(Querist)
15 December 2010
Hi,
Whether interest on borrowed capital which was fully utilised for investment in shares be capitalised in the cost of acquisition of shares??? case laws preferred
Whether interest on borrowed capital which was fully utilised for investment in shares be capitalised in the cost of acquisition of shares??? case laws preferred
15 December 2010
Vashisht Bhargava v ITO 1975/99ITR148
INTEREST ON MONEY BORROWED FOR PURCHASE OF ASSETS WILL BE ACTUAL PART OF CAPITAL COST.
INTEREST ON MONEY BORROWED FOR PURCHASE OF ASSETS WILL BE ACTUAL PART OF CAPITAL COST.
taxindiaconnect
(Expert)
15 December 2010
No, the cost of acquisition of shares can not be increased by the amount of interest as this is not allowed as cost of improvement.
CA Gaurav Makwana
(Querist)
17 December 2010
???
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