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2023 (8) TMI 284 - ITAT DELHIAddition of employee benefit expense, finance cost, administration expenses and depreciation - treating such expenditure as capital work-in-progress - As submitted Appellant had started/commenced its business during the year under consideration - whether the claim of expenditure is allowable as revenue or the same required to be capitalized either as a part of capital work in progress or as part of work in progress of construction of project? - HELD THAT:- The basis taken by the AO in presuming that business of the assessee has not commenced, the assessee has shown Nil income from business and profession and has already shown income from other sources - when the construction of project has started and this fact has not been disputed by the authorities below then the impugned expenditure if not allowable as revenue expenditure then the same required to be treated as capital work in progress. Since, CIT(A) himself noted that the impugned expenses relates to project then the same should have been included as project work-in-progress as the sole activity of assessee during relevant period was construction of only project - AO is directed to allow the impugned expenditure as project work in progress.
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