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The assessee in [2022] 441 ITR 195 (Bom)claimed deduction of CWIP write offs total of more than 8 crores pertaining to such abandoned projects in its existing business of website management and online services.
Allowing such deduction the High Court held that since it has not resulted in bringing any new asset into existence, then, such expenditure is an allowable business expenditure.
So the test is whether the expenditure is solely to purchase an asset in which case the same would be capital and in case the expenditure is sum total of various intangibles( revenue nature expenses) the same would be admissible as revenue .
Each case will depend on its own facts as in this case the claim is only for revenue expenses on professional, salary etc.

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