https://www.taxtmi.com/caselaws?id=30041 The court upheld the Tribunal's decision, ruling in favor of the Income-tax Department. It found the rectification under section 154 justified, deeming the preliminary expenditure for constructing a shopping complex as capital in nature. The court determined that the expenditure, though the project was abandoned, would have added to the project's capital if completed, entitling only to depreciation. Citing specific items for setting up the complex and concrete steps taken, the court concluded that the expenditure inherently added to the project's capital, precluding its treatment as revenue expenditure. en-us Wed, 16 Jan 2008 00:00:00 +0530 Thu, 31 Jul 2008 12:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30041 The court upheld the Tribunal's decision, ruling in favor of the Income-tax Department. It found the rectification under section 154 justified, deeming the preliminary expenditure for constructing a shopping complex as capital in nature. The court determined that the expenditure, though the project was abandoned, would have added to the project's capital if completed, entitling only to depreciation. Citing specific items for setting up the complex and concrete steps taken, the court concluded that the expenditure inherently added to the project's capital, precluding its treatment as revenue expenditure. Case-Laws Income Tax Wed, 16 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30041