Case Law Details
Bangalore International Airport Ltd. Vs DCIT (ITAT Bangalore)
Assessee submitted that Professional or Legal Service expenditure was incurred wholly in connection with entering into various agreements. Most of the expenditure was towards availing of professional and legal services during pre-operative period i.e. before commencement of the commercial operation. In our considered opinion, this expenditure is revenue in nature incurred during pre-operative period which qualifies for capitalization among various fixed assets. As a result of this expenditure, it cannot be said that the assessee had acquired any commercial rights. Furthermore, some of the expenditure also related to leasehold rights in land which par takes character of the land which does not qualify for depreciation.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal arises out of the order of the CIT(Appeals)–1, Bengaluru dated 13.01.2020 for the assessment year 2012-13.
2. The assessee has raised the following grounds:-
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