Expenditure on acquisition of Patent right debited to P/l account
..it will be disallowed while computing PGBP ??
See Jaisika, When Any Assets (Tangible or Intangible) is purchased then there is a simple concept for it:
1. Any Expense it made before the Assets is Put to use ;
Shall be added to the Cost of Assets. Which means Actual Cost (if business Assets is purchase) and Depreciation would be allowed thereon / COA (when Investment assets are purchased)
2. Any Expense made thereafter; Would simply be considered as Revenue expense and transferred to P&L straight away.
Now Your Questions-
Expenditure on Patent right if debited to P&L account that WRONG and has to be Added to the Actual Cost u/s 43(1) and Depreciation shall be allowed on that.
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