https://www.taxtmi.com/highlights?id=102510 Balance-sheet reclassifications arising from capitalisation of project expenditure and reversal of duplicate entries do not, by themselves, create taxable income. Transfer of Capital Work-in-Progress or pre-operative expenditure to fixed assets is characterised as a balance-sheet movement rather than revenue expenditure where no debit is made to the Profit and Loss Account and no deduction is claimed in computing income. A reduction in an asset account cannot support an addition merely from a numerical difference; taxability requires examination of corresponding ledger entries and a demonstrated charging or deeming basis, taxable benefit, remission, or inadmissible expenditure. The notes state that the Revenue's additions were deleted on these grounds. en-us Sat, 08 Aug 2026 10:28:49 +0530 Sat, 08 Aug 2026 10:28:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=102510 Balance-sheet reclassifications arising from capitalisation of project expenditure and reversal of duplicate entries do not, by themselves, create taxable income. Transfer of Capital Work-in-Progress or pre-operative expenditure to fixed assets is characterised as a balance-sheet movement rather than revenue expenditure where no debit is made to the Profit and Loss Account and no deduction is claimed in computing income. A reduction in an asset account cannot support an addition merely from a numerical difference; taxability requires examination of corresponding ledger entries and a demonstrated charging or deeming basis, taxable benefit, remission, or inadmissible expenditure. The notes state that the Revenue's additions were deleted on these grounds. Highlights Income Tax Sat, 08 Aug 2026 10:28:49 +0530 https://www.taxtmi.com/highlights?id=102510