https://www.taxtmi.com/caselaws?id=791205 Disallowance under section 40(a)(ia) is not attracted where the impugned expenditure has not been claimed as a deduction in the profit and loss account for the relevant year but has been capitalised to work-in-progress. The accounting method used, including percentage completion or completed contract, does not by itself control the position; the decisive factor is whether the expenditure entered the computation of income for that year. Where part of the amount remains in closing work-in-progress, the proper treatment is adjustment of work-in-progress to the extent needed, rather than a direct addition to total income. en-us Thu, 30 Apr 2026 00:00:00 +0530 Thu, 07 May 2026 07:08:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791205 Disallowance under section 40(a)(ia) is not attracted where the impugned expenditure has not been claimed as a deduction in the profit and loss account for the relevant year but has been capitalised to work-in-progress. The accounting method used, including percentage completion or completed contract, does not by itself control the position; the decisive factor is whether the expenditure entered the computation of income for that year. Where part of the amount remains in closing work-in-progress, the proper treatment is adjustment of work-in-progress to the extent needed, rather than a direct addition to total income. Case-Laws Income Tax Thu, 30 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791205