https://www.taxtmi.com/caselaws?id=471449 Expenditure incurred to establish a proposed Russian branch, including rent, salaries, travel, administration and project-feasibility costs, may be deducted as revenue expenditure under Section 37 when the expansion project is abandoned. Although the costs were incurred in earlier years and intended for capitalisation and amortisation after the branch commenced operations, no deduction had then been claimed. Where the branch does not materialise because of unfavourable business conditions, the liability crystallises on discontinuance of the project, making the expenditure allowable in the relevant assessment year. en-us Mon, 07 Apr 2025 00:00:00 +0530 Wed, 02 Sep 2026 19:01:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471449 Expenditure incurred to establish a proposed Russian branch, including rent, salaries, travel, administration and project-feasibility costs, may be deducted as revenue expenditure under Section 37 when the expansion project is abandoned. Although the costs were incurred in earlier years and intended for capitalisation and amortisation after the branch commenced operations, no deduction had then been claimed. Where the branch does not materialise because of unfavourable business conditions, the liability crystallises on discontinuance of the project, making the expenditure allowable in the relevant assessment year. Case-Laws Income Tax Mon, 07 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471449