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2008 (7) TMI 394 - HC - Income TaxAmortization of preliminary expenditure – section 35D - expenditure incurred by the assessee on techno-economic feasibility report for the manufacture of the new product – held that - It is an uncontroverted fact that the assessee is in the business of laying road and also a Government of Tamil Nadu company incorporated as a nodal agency for implementation of the Industrial Policy in the State of Tamil Nadu and for creation of infrastructure facilities such as road system highways bridge projects in the State on a commercial frame work. On the abovesaid finding of fact, the Commissioner (Appeals) has come to the conclusion that those expenses cannot be treated as capital expenditure for the current year and the expenses clearly come within the ambit of the provisions of section 35D because these have not been incurred for the expansion or extension of business but merely to find out new ideas by conducting test studies and pilot studies for improving the existing business.
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