Interest on loan for advance towards development of land is capital expenditure

Idea Estate Pvt. Ltd. Vs DCIT (ITAT Delhi)

In regard to ground of disallowance of interest of loan taken for advance given for project and treating it as capital expenditure it can be observed that the assessee has claimed that it had advanced for Bangalore Project and Gurgaon Project and the loan interest amounting to Rs. 5351806/- was paid towards advance given for the project. The ld CIT(A) observed that the expenditure on interest requires to be capitalized to the expenditure on the said project and is not allowable as r

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