https://www.taxtmi.com/caselaws?id=214374 The High Court ruled that pre-operation expenditure for setting up a new industrial unit is capital, not revenue expenditure, as it was not operational. Interest on term loans for acquiring plant and machinery is not deductible until the asset is in use, per section 36(1)(iii) proviso. Despite this, the Court upheld the Tribunal's decision, emphasizing the importance of correctly categorizing expenses under the Income Tax Act and complying with statutory provisions for deductions. The Revenue's appeals were dismissed, affirming the distinction between revenue and capital expenditure. en-us Fri, 29 Jan 2010 00:00:00 +0530 Fri, 29 Jun 2012 05:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214374 The High Court ruled that pre-operation expenditure for setting up a new industrial unit is capital, not revenue expenditure, as it was not operational. Interest on term loans for acquiring plant and machinery is not deductible until the asset is in use, per section 36(1)(iii) proviso. Despite this, the Court upheld the Tribunal's decision, emphasizing the importance of correctly categorizing expenses under the Income Tax Act and complying with statutory provisions for deductions. The Revenue's appeals were dismissed, affirming the distinction between revenue and capital expenditure. Case-Laws Income Tax Fri, 29 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214374