Jt. Commissioner Of Income Tax,Valsad, ... vs M/S. United Phosphorous Ltd

The Supreme Court addressed two questions regarding the Income-tax Act, 1961. It held that interest on borrowings for capital assets not in use can be deducted under Section 36(1)(iii), aligning with its previous ruling in Dy. Commr. of Income Tax, Ahmedabad v. M/s. Core Health Care Ltd. The Court remanded the second question regarding the option to claim partial depreciation to the High Court, noting the omission of Section 34(1) and the relevance of Explanation 5 to Section 32(1). The appeal was partly allowed in favor of the assessee.