Interest on Loan taken for Machinery allowable from the date it put to use

Brief of the Case ITAT Ahmedabad held In the case of Ashima Dyecot Limited vs. DCIT that interest on capital borrowed for plant & machinery which already has put to use for commercial production is allowed u/s 36 (1) (iii). In the given case, it is presumed that the assessee has put to use its plant and machinery and the assessee has already started its commercial production on 23.9.1996. Therefore, we held it entitled for deduction of sum incurred on capital borrowed for purpose of the business.  Facts of the Case The assessee started its commercial production on 23.9.96 and continued to...