https://www.taxtmi.com/caselaws?id=120605 Depreciation on assets of an international division was disputed on the ground of non-use. The Tribunal held that depreciation is allowable where the assets form part of the common block of assets and were ready for use, applying the "ready for use" test; the disallowance was rejected. Expenditure on leasehold premises treated as temporary structures was held to be revenue in nature since it did not create a capital asset; the deduction allowed by CIT(A) was upheld. Recruitment and training costs were held to be revenue expenditure as they facilitate business operations without creating an enduring capital asset; disallowance was rejected. Foreign exchange fluctuation loss on a working-capital loan was held to accrue year-end as an ascertained liability; deduction upheld. Deferred tax and provision for doubtful debts were held not addable to book profit under s.115JB; additions deleted and appeal dismissed. en-us Fri, 22 Feb 2008 00:00:00 +0530 Mon, 05 Jan 2026 15:40:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120605 Depreciation on assets of an international division was disputed on the ground of non-use. The Tribunal held that depreciation is allowable where the assets form part of the common block of assets and were ready for use, applying the "ready for use" test; the disallowance was rejected. Expenditure on leasehold premises treated as temporary structures was held to be revenue in nature since it did not create a capital asset; the deduction allowed by CIT(A) was upheld. Recruitment and training costs were held to be revenue expenditure as they facilitate business operations without creating an enduring capital asset; disallowance was rejected. Foreign exchange fluctuation loss on a working-capital loan was held to accrue year-end as an ascertained liability; deduction upheld. Deferred tax and provision for doubtful debts were held not addable to book profit under s.115JB; additions deleted and appeal dismissed. Case-Laws Income Tax Fri, 22 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120605