https://www.taxtmi.com/caselaws?id=371141 The Tribunal dismissed the revenue's appeal, upholding the Ld. CIT(A)'s decision to delete the addition of income during the trial run period and allowing the corresponding expenses as revenue expenditure. The Tribunal emphasized that income earned during the trial run period should be reduced from capital expenditure, following the matching concept of accountancy. The decision was supported by the principle that receipts from commercial production before the commencement of business are of a capital nature and cannot be taxed, resulting in the AO's addition being deemed unsustainable. en-us Wed, 10 Oct 2018 00:00:00 +0530 Thu, 29 Nov 2018 07:56:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371141 The Tribunal dismissed the revenue's appeal, upholding the Ld. CIT(A)'s decision to delete the addition of income during the trial run period and allowing the corresponding expenses as revenue expenditure. The Tribunal emphasized that income earned during the trial run period should be reduced from capital expenditure, following the matching concept of accountancy. The decision was supported by the principle that receipts from commercial production before the commencement of business are of a capital nature and cannot be taxed, resulting in the AO's addition being deemed unsustainable. Case-Laws Income Tax Wed, 10 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371141