06 May 2011
If Purchase of steel and beam by a real estate co. is for construction of property to be sold, then it is raw materials. If the said beam and steel is to be used for construction of property to be used as its own office/residence, only then it can be treated as part of capital work in progress to be transferred subsequently to fixed assets on completion.
cash payment made for capital goods is not covered u/s 40A(3)
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