https://www.taxtmi.com/caselaws?id=69096 Trial production and preparatory testing of plant and machinery do not amount to commercial production or commencement of business for income-tax deductions unless actual business use is proved with supporting evidence. The assessee's unit was found to have remained at the trial-run stage, as directors' reports, balance-sheet entries and contemporaneous correspondence showed no full commercial production or trading activity during the relevant years. The absence of the production register and other verifiable records justified an adverse inference. On that basis, depreciation, business loss and investment allowance were treated as not allowable for the assessment years under consideration. en-us Fri, 06 Aug 1999 00:00:00 +0530 Tue, 05 Apr 2011 11:45:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69096 Trial production and preparatory testing of plant and machinery do not amount to commercial production or commencement of business for income-tax deductions unless actual business use is proved with supporting evidence. The assessee's unit was found to have remained at the trial-run stage, as directors' reports, balance-sheet entries and contemporaneous correspondence showed no full commercial production or trading activity during the relevant years. The absence of the production register and other verifiable records justified an adverse inference. On that basis, depreciation, business loss and investment allowance were treated as not allowable for the assessment years under consideration. Case-Laws Income Tax Fri, 06 Aug 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69096