https://www.taxtmi.com/caselaws?id=36225 Pre-commencement expenditure incurred while a factory and machinery were still under construction may form part of the actual cost of plant and machinery if it is necessary to bring the assets into existence and into working condition. Expenditure not directly referable to a specific item of plant can still be capitalised on a practical, business-like view where it represents part of the cost that would have been paid under a turn-key or independent-contractor arrangement. On the facts noted, foreign tour expenses of the managing director and technical adviser, and auditor's fees other than annual audit fees, satisfied that test and were includible in actual cost for depreciation. en-us Fri, 30 Jan 1981 00:00:00 +0530 Sat, 20 Mar 2010 11:25:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36225 Pre-commencement expenditure incurred while a factory and machinery were still under construction may form part of the actual cost of plant and machinery if it is necessary to bring the assets into existence and into working condition. Expenditure not directly referable to a specific item of plant can still be capitalised on a practical, business-like view where it represents part of the cost that would have been paid under a turn-key or independent-contractor arrangement. On the facts noted, foreign tour expenses of the managing director and technical adviser, and auditor's fees other than annual audit fees, satisfied that test and were includible in actual cost for depreciation. Case-Laws Income Tax Fri, 30 Jan 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36225