Interest on loan borrowed for project held as stock-in-trade is revenue expenditure

ACIT Vs MMR Social Housing Pvt. Ltd. (ITAT Mumbai)

ITAT Mumbai held that it is an undisputed fact that loan is borrowed for the purpose of project and the said project constitutes stock-in-trade. Accordingly, interest expenditure cannot be disallowed by capitalizing it to work in progress. Such interest expenditure is revenue in nature.

Facts-

The assessee is a company engaged in the business of real estate construction and development. During the year under conside

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