Cost incurred in abandoned projects should be allowed : ITAT Mumbai

The very fact that the assessee abandoned the projects goes to prove that the projects were not found to be viable or workable. Therefore, keeping in view the business interest, the assessee decided to abandon the projects. In fact, in the CBDT circular no.16 of 6th October 2015, the Board has clearly stated that cost incurred in abandoned projects should be allowed as revenue expenditure under section 37 of the Act. In view of the aforesaid, we allow assessee’s claim of deduction.  1. Assessee has challenged the disallowance of 19,19,286, representing the cost of Television serials and fil...