Allowing the appeal of the assessee the Court held that ;expenditure incurred for implementation of new project in same line of business which was abandoned as per the order of State Govt , since said project was in same line of existing business of assessee and there was no creation of any new asset of enduring nature, entire exp. incurred on said project was to be allowed as revenue expenditure.( AY. 1998 -99 ,1999-2000 )
Tamilnadu Magnesite Ltd. v. ACIT (2018) 407 ITR 543/ 257 Taxman 79/ 171 DTR 151/ 305 CTR 269 (Mad) ( HC)
S.37(1): Business expenditure- Capital or revenue -Abandoned projects – State Government ordered closure of implementation of said project – Same line of existing business- Allowable as business expenditure.