Expenses for abandoned projects allowable as revenue Expense: Bombay HC

PCIT Vs Rediff.Com India Ltd. (Bombay High Court) Bombay High Court has upheld the Income Tax Appellate Tribunal’s (ITAT) decision in favor of Rediff.Com India Ltd., allowing the company to claim a deduction for capital work-in-progress written off from abandoned projects. The ruling, delivered in the case of PCIT Vs Rediff.Com India Ltd., dismisses the appeal filed by the Principal Commissioner of Income Tax, affirming that expenses incurred on such projects, being revenue in nature, are allowable as business expenditure. Rediff.Com had initiated several projects to enhance its website ...