Project expense allowable as business loss on financial closure of project

Aditya Birla Power Company Limited Vs ACIT (ITAT Mumbai) The undisputed position that emerges out of the above discussion is that the assessee undertook a project and incurred certain expenditure which was reimbursable to him along with development fees upon financial closure of the project. However, the project was ultimately aborted by the assessee and the management decided to write-off the stated expenditure in the books of account during the impugned AY. The said claim, in our opinion, is clearly not available to assessee in terms of Section 36(i)(vii) read with Section 36(2) since the am...