A partnership firm is in reality business. Firm has paid advance (almost 90%) for purchase of plot, which is subject to certain clearence from govt. dept., which may take 3 to 4 years and accordingly MOU is signed (Not Registered).
Now the firm has taken loan for the above purpose and every year interest is paid after deducting TDS whether such interest payment should be capitalised every year or it should be treated as revenue expenses every year and accordingly loss should be carry forward every year.
Please note that there are other activities carried out other than above single deal in the said firm.
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