Disallowance of interest on capital as attributable to capital work-in-progress relying on the proviso to Section 36(1)(iii)

Last updated: 27 November 2021
Quick Summary
The High Court of Karnataka has ruled that interest on capital cannot be claimed as a deduction if it's attributable to capital work-in-progress. This decision was made by relying on the proviso to Section 36(1)(iii) of the Income Tax Act. Consequently, the Commissioner of Income Tax (Exemptions) was upheld in disallowing such interest claims.

Court :
Karnataka High Court

Brief :
Appeal filed under Revenue 260A of Income Tax Act 1961.

Citation :
ITA130/2021

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Published in Income Tax
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