Whether in case revenue Neutral additions an appeal can be filed under Income Tax Act.

In case of assessee who is engaged in construction activity, has incurred certain expenditure which he has claimed as revenue expenditure and included in the work in progress,as there was no sale. During the course of assemment proceedings AO completed the assessment by considering it as capital expenditure and he reduced the amount of such expenditure from the Work in progress. Assessee prepfered an appeal before CIT A on following ground : a. It is revenue expenditure only and claimed is correct and WIP is also correct. b. If it is not reevune expenditure, then allow it to be appropriated…

► Read Answer