TMI Blog2008 (1) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure - rectification carried out u/s 154 of the Income-tax Act is perfectly justified - Tribunal rightly dismissed the assessee’s appeal on the validity of rectification as well as against disentitlement for the claim - 157/2000 - - - Dated:- 16-1-2008 - C. N. RAMACHANDRAN NAIR and T. R. RAMACHANDRAN NAIR JJ. P. Balakrishnan for the Appellant. P. K. R. Menon and George K. George ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preliminary expenditure for construction of a shopping complex. The various items of expenditure incurred in this behalf are remuneration for soil testing, fee paid to the Calicut development authority and to the corporation of Calicut for approval of plan and fee paid to the architect for preparation of plan. Even though the original assessment was completed allowing the claim, the assessment wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and contended that the expenditure has not resulted in any enduring benefit to the assessee and so much so, it was not capital nature. Standing counsel on the other hand submitted that the expenditure is prima facie capital in nature as it is preliminary expenditure incurred for construction of a shopping complex which was later given up by the assessee on account of shortage of funds. Standing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan, soil testing for the purpose of deciding the foundation work etc. The project was abandoned for want of funds. If the project was taken up and completed, there can be no doubt that the item of expenditure would have gone to add to the cost of construction entitling only for depreciation. The preliminary expenditure incurred for construction of a shopping complex cannot be anything other than ..... X X X X Extracts X X X X X X X X Extracts X X X X
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