Capital expenditure deduction for specified businesses allows full write off in year incurred subject to eligibility and recapture rules. An assessee may elect to deduct the whole of capital expenditure incurred wholly and exclusively for a specified business in the tax year incurred; pre commencement capitalised expenditure is deductible in the year operations commence. The deduction is limited to newly set up businesses meeting ownership, approval, capacity sharing and prescribed conditions, and to businesses commencing on or after dates listed in the Table. Claiming this deduction excludes claims under section 144, Chapter VIII C or any other section for the same expenditure. Assets receiving the deduction must be used only for the specified business for eight years, with recapture rules if used otherwise, and specified exclusions and definitions govern eligibility.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital expenditure deduction for specified businesses allows full write off in year incurred subject to eligibility and recapture rules.
An assessee may elect to deduct the whole of capital expenditure incurred wholly and exclusively for a specified business in the tax year incurred; pre commencement capitalised expenditure is deductible in the year operations commence. The deduction is limited to newly set up businesses meeting ownership, approval, capacity sharing and prescribed conditions, and to businesses commencing on or after dates listed in the Table. Claiming this deduction excludes claims under section 144, Chapter VIII C or any other section for the same expenditure. Assets receiving the deduction must be used only for the specified business for eight years, with recapture rules if used otherwise, and specified exclusions and definitions govern eligibility.
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