Pre-Operative Expenses for Business Expansion Allowable as Revenue: ITAT Delhi

Tata Teleservices Ltd Vs ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi Bench, has delivered a significant verdict in favor of Tata Teleservices Ltd. (the assessee) in appeals concerning the Assessment Years (AY) 2009-10 and 2010-11. The Tribunal ruled that pre-operative expenses incurred for the expansion of existing telecommunication business and customer acquisition costs are to be treated as revenue expenditure, thereby allowing full deduction and deleting substantial additions made by the Assessing Officer (AO). The case, adjudicated against the Assistant Commissioner of In...