TRIAL RUN INCOME

[raoanant]

TRIAL RUN INCOME REDUCED FROM TRIAL RUN EXPENSES AND THE NET TRIAL RUN  EXPENSES CAPITALISED TO FIXED ASSETS - INCOME TAX TREATMENT ?

[ashutosh majumdar]

Pl check in CIT vs. Bokaro Steel Ltd 236 ITR 315, CIT v. Karnataka Power Corpn 247 ITR 268 and CIT vs. Karnal Co-operative Sugar Mills Ltd 243 ITR 2 and that of the Hon'ble Delhi High Court in Indian Oil Panipat Consortium Ltd. vs. ITO 315 ITR 255. In all these it was held that pre-operative income could be setoff against pre-op expenditure.