Capitalisation of expenditure in real estate companies not permissible without dispute of genuineness of the same as it is revenue neutral

CIT Vs Somnath Buildtech Pvt. Ltd. (Delhi High Court)

The Revenue in these proceedings admits to the genuineness of the expenditure. There is also no dispute that the Assessee is bound to draw up its Profit and Loss account and balance sheet in compliance with the accounting standards of the ICAI. The learned counsel for the Respondent has failed to point out any ground for contending that the Guidance Note issued by ICAI for applying the Accounting Standard (AS-7) is not applicable to the Assessee. The contention of the Revenue that the disallowed expe

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