https://www.taxtmi.com/caselaws?id=796684 Balance sheet movements in Capital Work-in-Progress and pre-operative expenses do not constitute taxable income or revenue expenditure merely because account balances change. Capitalisation transfers to fixed assets are reclassifications, and reversals of duplicate entries neither create income nor represent deductible expenditure where no amount is charged to the Profit and Loss Account or claimed as a deduction. A reduction in a balance sheet asset cannot support an income addition without evidence of inadmissible expenditure, a claimed deduction, taxable remission or cessation, or a charging or deeming provision. The additions were therefore deleted as non-taxable accounting adjustments. en-us Tue, 04 Aug 2026 00:00:00 +0530 Sat, 08 Aug 2026 08:32:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796684 Balance sheet movements in Capital Work-in-Progress and pre-operative expenses do not constitute taxable income or revenue expenditure merely because account balances change. Capitalisation transfers to fixed assets are reclassifications, and reversals of duplicate entries neither create income nor represent deductible expenditure where no amount is charged to the Profit and Loss Account or claimed as a deduction. A reduction in a balance sheet asset cannot support an income addition without evidence of inadmissible expenditure, a claimed deduction, taxable remission or cessation, or a charging or deeming provision. The additions were therefore deleted as non-taxable accounting adjustments. Case-Laws Income Tax Tue, 04 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796684