Assessee was planning expansion of its business premises and in that regard employed consultants and contractors for planning, designing and constructing new building.  Later on, assessee decided to abandon expansion plan and, accordingly, entire expenditure incurred towards expansion of building premises was written off in profit and loss account Assessee also paid damages to contractor employed for purpose of putting up business premises for purpose of expansion. The Assessee claimed the expenditure as revenue expenditure. The AO has treated the said expenditure as capital expenditure. Tribunal affirmed the order of the AO treating the said expenditure as capital in nature.  (AY. 2008-09)