Advances for Shelved Project is a Revenue Expense: Bombay HC

PCIT-2 Vs Tata Chemicals Ltd (Bombay High Court) Bombay High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax-2 (Revenue) against Tata Chemicals Ltd. for the Assessment Year (AY) 2000-01. The court, upheld a previous decision by the Income Tax Appellate Tribunal (ITAT), Mumbai, by affirming that the legal questions raised by the Revenue were covered by prior judgments, including those in the assessee’s own case. The Revenue had proposed four questions of law, primarily challenging the ITAT’s decision to allow various expenditures as revenue expenses. ...