https://www.taxtmi.com/caselaws?id=470644 Milestone-based financial assistance paid during project development for achieving construction milestones under a BOT water-supply concession is characterised by its purpose. Where it supports establishment or completion of project facilities rather than post-commencement business operations, it is treated as a capital receipt and reduces capital work-in-progress rather than being taxable revenue. Capital work-in-progress expenditure supported by subcontractor invoices cannot be disallowed on an ad hoc basis merely because every item is not verifiable; an estimated disallowance requires identified defects or evidence that expenditure is inflated, excessive, or non-genuine. The notes state that both additions were deleted. en-us Tue, 10 Dec 2024 00:00:00 +0530 Mon, 03 Aug 2026 19:04:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470644 Milestone-based financial assistance paid during project development for achieving construction milestones under a BOT water-supply concession is characterised by its purpose. Where it supports establishment or completion of project facilities rather than post-commencement business operations, it is treated as a capital receipt and reduces capital work-in-progress rather than being taxable revenue. Capital work-in-progress expenditure supported by subcontractor invoices cannot be disallowed on an ad hoc basis merely because every item is not verifiable; an estimated disallowance requires identified defects or evidence that expenditure is inflated, excessive, or non-genuine. The notes state that both additions were deleted. Case-Laws Income Tax Tue, 10 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470644