Dismissing the appeal of the revenue the Court held that, the amounts expended by an assessee, which are preoperative in nature and are in fact made prior to coming in or the existence of the business itself would be a capital expenditure and entitle to depreciation.(AY.1993 -94)
CIT v. Phonex Lamps India Ltd. (2018) 406 ITR 550 (All) (HC)
S.32: Depreciation-Preoperative expenses — Capital expenditure — Entitle depreciation .