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2017 (5) TMI 304 - GUJARAT HIGH COURTDisallowance of expenditure incurred for Ahmedabad Township Office Project - revenue v/s capital expenditure - Held that:- A.O. made disallowance of aforesaid amount treating it as capital and categorizing in capital account, against claim of the assessee to treat it as revenue expenditure, on the ground that at the time when the aforesaid expenditure was incurred, the project had not begun. However, it is required to be noted that in the books of accounts / profit and loss account, the assessee claimed the same as revenue expenditure. There cannot be any absolute proposition of law that every expenditure made prior to the commencement of the project may not be treated as revenue expenditure and the same is to be treated as capital. In the facts and circumstances of the case the learned tribunal has rightly deleted the disallowance of expenditure - Decided in favour of assessee
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