https://www.taxtmi.com/caselaws?id=773366 ITAT Delhi held that pre-operating costs claimed by assessee were revenue expenditure related to business expansion to new geographical areas before commercial exploitation. The tribunal ruled that mere nomenclature in books cannot determine expense allowability, citing SC precedents. Regarding customer acquisition costs, ITAT sustained CIT(A)'s decision allowing 50% expenditure, noting that since CIT(A) recognized the revenue nature of expenses, and tax rates were same across assessment years, full deduction should be allowed in current year rather than deferred. Both grounds were sustained in assessee's favor. en-us Wed, 18 Jun 2025 00:00:00 +0530 Sat, 21 Jun 2025 08:29:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773366 ITAT Delhi held that pre-operating costs claimed by assessee were revenue expenditure related to business expansion to new geographical areas before commercial exploitation. The tribunal ruled that mere nomenclature in books cannot determine expense allowability, citing SC precedents. Regarding customer acquisition costs, ITAT sustained CIT(A)'s decision allowing 50% expenditure, noting that since CIT(A) recognized the revenue nature of expenses, and tax rates were same across assessment years, full deduction should be allowed in current year rather than deferred. Both grounds were sustained in assessee's favor. Case-Laws Income Tax Wed, 18 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773366