Tribunal held that the assessee was justified in debiting all expenses to work-in-progress except expenses related to administration of business .Since employee cost, administrative, selling and marketing expenses etc. were revenue expenses not related to construction activity, same would be allowable in year in which they were incurred . (AY.2007 -08)
Macrotech Construction (P.) Ltd. v. ACIT (2019) 176 ITD 530 (Mum.)(Trib.)
S. 37(1) : Business expenditure–Construction business- Accounting Standard-2- Justified in debiting all expenses to work-in-progress except expenses related to administration, selling, marketing, etc. [S. 145]