remaining after reducing the broken period interest is capitalised to the balance sheet covering the acquisition cost of such securities. It is submitted that the department has accepted the said methodology for several years. It was submitted that the exercise undertaken by Revenue in disallowing broken period interest on the footing that it is a capital expenditure is revenue neutral. It was pointed out that if the deduction of broken period interest as a capital expense is disallowed, it will have to be added to the acquisition cost of the securities, which will then be deducted from the sale proceeds when such securities are sold in the subsequent years. It was submitted that, consequently, the related interest received would have to be excluded from the income and truncated from the purchase cost, 8 (1992) 193 ITR 321 : (1992) 1 SCC 659 Civil Appeal No.3291­3294 of 2009, etc. Page 9 of 45or alternatively, both the broken interest period and interest received thereof will be