Our is a Private Limited company having only income from House Property.
During the year company has purchased office premises in the month of Dec.2008 on borrowed funds.
Company paid interest on the same for F.Y.2008-09.
Simaltaneously company negotiated for renatal of office premises with multinational company.
Our company have to give complete office duly furnished as per their requirements hence first rentals from MNC started from the month of Jue 2010.
On the basis of expected revenue and final terms of rentals we have claimed interest on borrowings as the revenue expenditure directed from rental income of other all offices.
Kindly give supporting arguements and case laws confirmimg the same whateher Interest on borrowed fund can be claimed as revenue expenditure or not in the year of F.Y. 2008 -09 because the revenue from the same premise has been started form the F.Y. 2009-10
CAclubindia
