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Delhi ITAT: Section 40(a)(ia) Disallowance Cannot Apply to Interest Capitalised as WIP
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AdvertisementUnitech Acacia Projects Pvt.
Ltd. Vs ACIT (ITAT Delhi) Delhi ITAT: Section 40(a)(ia) Disallowance Cannot Extend to Interest Capitalised as Work-in-Progres In a batch of appeals involving Unitech Acacia Projects Pvt.
Ltd., the Delhi ITAT held that section 40(a)(ia) applies only to expenditure claimed in the Profit & Loss Account and cannot be invoked in respect of interest that has been capitalised as Work-in-Progress (WIP).
The Tribunal also dealt with TDS liability on lease rent paid to NOIDA and related authorities and the consequential interest under section 201(1A).
On the issue of TDS...