https://www.taxtmi.com/caselaws?id=151710 The Tribunal dismissed the appeal for the assessment year 2002-03, affirming the classification of pre-operative project expenses as capital expenditure since the business was not set up. For the assessment year 2003-04, the Tribunal allowed the appeal, determining that the interest income from a security deposit should be treated as a capital receipt, reducing the cost of setting up the business. The Tribunal held that expenses incurred after setting up a business are allowable, but in this case, the business was not set up, and capital expenditure could not be reclassified as revenue due to project abandonment. en-us Mon, 20 Apr 2009 00:00:00 +0530 Sat, 21 Oct 2023 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151710 The Tribunal dismissed the appeal for the assessment year 2002-03, affirming the classification of pre-operative project expenses as capital expenditure since the business was not set up. For the assessment year 2003-04, the Tribunal allowed the appeal, determining that the interest income from a security deposit should be treated as a capital receipt, reducing the cost of setting up the business. The Tribunal held that expenses incurred after setting up a business are allowable, but in this case, the business was not set up, and capital expenditure could not be reclassified as revenue due to project abandonment. Case-Laws Income Tax Mon, 20 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151710