The Hon’ble Tribunal observed that the Assessee had suitably demonstrated incurring of expenditure by self, by pointing out that the shareholders agreement between the joint venture partners which required the respective parties to the joint venture, to bear costs up to a certain date and the Assessee had till then incurred this cost which is sought to be written off. There was no question therefore of the joint venture company bearing any expenditure up to this cutoff date. The Hon’ble Tribunal thus held that the assessee was entitled to a deduction of project expenses. (AY. 2000-01)
Gujarat State Fertilizers & Chemicals Ltd v. DCIT (2023) 102 ITR 76 (SN) (Ahd.)(Trib.)
S. 37(1) : Business expenditure-Project abandoned-Joint venture project-Expenditure incurred relating to a joint venture project later abandoned is allowable in so far as the expenditure is incurred by the Assessee itself and not the joint venture entity.