Income generated on sale of goods generated on trial run - ...

Income from trial run sales is capital, not taxable revenue; offsets plant setup costs, not income tax.

March 21, 2017

Case Laws Income Tax AT

Income generated on sale of goods generated on trial run - taxable as revenue or not - if the assessee receives any amounts which are inextricably linked with the process of setting up its plant and machinery, such receipts will go to reduce the cost of its assets. These are receipts of a capital nature and cannot be taxed as income. - AT

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Income generated on sale of goods generated on trial run - ...

Income from trial run sales is capital, not taxable revenue; offsets plant setup costs, not income tax.

March 21, 2017

Case Laws Income Tax AT

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