Specified business deduction rules govern capital expenditure, pre-commencement costs, eligibility conditions, and lock-in use restrictions. Deduction is available for capital expenditure incurred wholly and exclusively for a specified business, subject to the business not being formed by splitting up or reconstruction of an existing business and to the prescribed ownership, approval, common-carrier and notification conditions. Pre-commencement expenditure capitalised in the books is allowed in the year of commencement. The allowance is barred where the same expenditure has already been claimed under another deduction provision, and qualifying assets remain subject to a lock-in period during which use for a non-specified purpose can trigger taxation of the earlier deduction.
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.
Specified business deduction rules govern capital expenditure, pre-commencement costs, eligibility conditions, and lock-in use restrictions.
Deduction is available for capital expenditure incurred wholly and exclusively for a specified business, subject to the business not being formed by splitting up or reconstruction of an existing business and to the prescribed ownership, approval, common-carrier and notification conditions. Pre-commencement expenditure capitalised in the books is allowed in the year of commencement. The allowance is barred where the same expenditure has already been claimed under another deduction provision, and qualifying assets remain subject to a lock-in period during which use for a non-specified purpose can trigger taxation of the earlier deduction.
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