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If project is abandoned them expenditure on product development is revenue expenditure


Last updated: 13 December 2022

Court :
Bombay High Court

Brief :
THE BOMBAY HIGH COURT HAS RULED that the expenditure incurred on development of a new product, in respect of the same business already carried on by the assessee, which subsequently failed to come into existence and was abandoned, is eligible for deduction as revenue expenditure.

Citation :
Income Tax Appeal No. 640 of 2018

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