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| The Tax Publishers2020 TaxPub(DT) 0522 (Bom-HC) INCOME TAX ACT, 1961
Section 37(1)
Question of law was considered in CIT & Anr. v. Reliance Supply Chain Solutions Ltd. & Ors.[ITA No. 892 of 2014, ITA No. 948 of 2014, dt. 5-7-2017], as such expenditure towards the project development cost had to be treated as revenue expenditure.
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Business expenditure - Expenses incurred in preoperative period towards the project development cost - Revenue or capital expenditure -
Issue arose under consideration as to whether Tribunal had erred in deleting disallowance in respect to expenses incurred in preoperative period towards the project development cost. Assessee had treated the same expenditure as revenue for IT purposes whereas for all other purposes and laws, it had treated the expenditure as capital expenditure. Held: Question of law was considered in CIT & Anr. v. Reliance Supply Chain Solutions Ltd. & Ors.[ITA No. 892 of 2014, ITA No. 948 of 2014, dt. 5-7-2017], as such expenditure towards the project development cost had to be treated as revenue expenditure and therefore, the appeal of revenue was dismissed.
REFERRED : Vijay Kumar Talwar v. CIT (2011) 330 ITR 1 (SC) : 2011 TaxPub(DT) 693 (SC), Pr. CIT v. Reliance Home Store Ltd. [Income Tax Appeal No. 197 of 2017, dt. 3-6-2019] and CIT & Anr. v. Reliance Supply Chain Solutions Ltd. & Ors.[Income Tax Appeal No. 892 of 2014, ITA No. 948 of 2014, dt. 5-7-2017].
FAVOUR : In assessee's favour.
A.Y. :
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