Nature of Interest

Any expenditure incurred for purchase of capital asset like machinery, premises, land etc are termed as capital expenditure
Any loan taken for purchase of above capital asset, the interest portion of the said loan can be added to the cost of capital asset till it's put to use. After that interest needs to be charged to revenue.
Also any funds that are availed for purchase of capital asset which are temporarily parked in fd, the interest earned on such fd needs to be reduced from the cost till asset is put to use.