Interest expenditure on abandoned project allowable as revenue expense

Anand Engineering Products Pvt. Ltd. Vs ACIT (ITAT Chennai) As regards, disallowance of interest expenses u/s.36(1)(iii) of the Income Tax Act, 1961, it was argument of the assessee before the Assessing Officer that although, interest expenses and other expenditure has been capitalized to work in progress account, but subsequently, project has been abandoned due to various reasons and thus, the assessee did not capitalize interest on borrowed capital to work in progress. We find that the assessee has substantiated its claim with necessary evidences, including Board resolution and argued that p...