https://www.taxtmi.com/caselaws?id=35647 Pre-production expenditure is includible in the actual cost of plant and machinery for depreciation and development rebate only to the extent it is directly referable to bringing the assets into existence and into working condition. Staff training, insurance, power and fuel were allowed only where they were shown to relate to construction or erection; the balance remained general pre-production expenditure and was excluded. Interest paid on deferred payment for machinery before commencement of production was treated as part of actual cost and allowed for depreciation and development rebate, consistent with the principle in Challapalli Sugars. en-us Wed, 10 Jun 1981 00:00:00 +0530 Mon, 15 Mar 2010 17:27:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35647 Pre-production expenditure is includible in the actual cost of plant and machinery for depreciation and development rebate only to the extent it is directly referable to bringing the assets into existence and into working condition. Staff training, insurance, power and fuel were allowed only where they were shown to relate to construction or erection; the balance remained general pre-production expenditure and was excluded. Interest paid on deferred payment for machinery before commencement of production was treated as part of actual cost and allowed for depreciation and development rebate, consistent with the principle in Challapalli Sugars. Case-Laws Income Tax Wed, 10 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35647