Tax amortisation

This discussion clarifies how expenses such as site preparation, installation, and labour are capitalised as part of machinery cost and subsequently depreciated. It also addresses whether amortisation of capitalised intangible assets is tax deductible under the IT Act. The consensus is that expenditure incurred until an asset is put to use is capitalised and depreciated, while post-use expenses are expensed off, with amortisation/depreciation allowed as per the IT Act.