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TRIAL RUN INCOME

Started by raoanant, May 02, 2012, 06:21:57 PM

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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.