Temporary Tunnel Structures Are Revenue, Not Capital Expenditure

Nuziveedu Swathi Coastal Consortium Vs ACIT (ITAT Hyderabad) Tunnel Project Infrastructure Is Revenue Expenditure — ITAT Hyderabad Allows Full Deduction The Hyderabad Bench of the ITAT allowed the assessee’s appeals for AYs 2013-14 to 2015-16, 2017-18 & 2018-19, holding that expenditure incurred on temporary railway tracks, rollers & structures, conveyor belts, and ventilation ducting used in tunnel construction is revenue in nature and not capital expenditure. Key rulings and reasoning: Nature of advantage test applied: The Tribunal held that the decisive test is whether the expe...