Gujarat State Fertilizers and Chemicals Ltd. v.Dy. CIT (2024) 110 ITR 641 (Ahd)(Trib)

S. 37(1) : Business expenditure-Capital or revenue-Expenditure relating to abandoned projects-Projects linked to existing business-Amounts written off-Allowable as revenue expenditure.

Held that  abandoned projects were part of the business of manufacturing chemicals and, if the plant had come into fruition, the business expenditure of the assessee would have been much more. Therefore, the expenditure written off by the assessee had to be considered as business revenue expenditure. (AY. 2011-12)

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