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Re. Interest on Borrowed Capital....Capitalised???

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(Querist)
15 December 2010 Hi,
Whether interest on borrowed capital which was fully utilised for investment in shares be capitalised in the cost of acquisition of shares??? case laws preferred
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
15 December 2010 Vashisht Bhargava v ITO 1975/99ITR148

INTEREST ON MONEY BORROWED FOR PURCHASE OF ASSETS WILL BE ACTUAL PART OF CAPITAL COST.
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taxindiaconnect

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taxindiaconnect (Expert)
15 December 2010 No, the cost of acquisition of shares can not be increased by the amount of interest as this is not allowed as cost of improvement.
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CA Gaurav Makwana

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CA Gaurav Makwana (Querist)
17 December 2010 ???

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