Please let me know the treatment of Pre operative expenses under the Income Tax Act . Further unit purchased some Assets like computer , Vehicle etc. and started construction of building as on 1.1.2007. construction complted on 31.12.2007. Prepoerative exp. also capitalized on 31.12.2007. Prodction started on 1.11.2007 for trial run. Trial run exp & Sale also capitalized on 31.12.2007 in the ratio of fixed assets like building, P& M etc.
Actual production started as on 1.1.2008.
whether dep. can be claimed for the year 2006-07 under the income tax act 1961 while actual production date is 1.1.2008.
please mention case law or section which talks about the treatment of such expneses or fixed assets purchased prior to commecnement or actual prodcution?