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TMI Blog2010 (5) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... harges are incurred in relation to a project which is yet to be completed and other expenditure are being grouped under work-in-progress. these two expenses incurred by the assessee on account of interest on borrowed funds and legal and professional charges, should also be grouped under work-in-progress. As a result, the value of the closing stock of work-in-progress will go up. The assessee will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to Rs. 44,193 is capital expenditure. (2) That the learned Commissioner of Income-tax (Appeals) has erred in law in holding that the legal expenses of Rs. 50,000 are capital expenditure. (3) That the impugned appellate order is arbitrary, illegal, bad in law and in violation of rudimentary principles of contemporary jurisprudence." 2. The brief facts of the case are that the return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer that the expenditure are capital in nature and he disallowed both. Being aggrieved, the assessee carried the matter in appeal before the learned Commissioner of Income-tax (Appeals) but without success and now the assessee is in further appeal before us. 3. It is submitted by the learned authorised representative for the assessee that these expenses are not capital in nature and at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered opinion that these two expenses incurred by the assessee on account of interest on borrowed funds and legal and professional charges, should also be grouped under work-in-progress. As a result, the value of the closing stock of work-in-progress will go up. The assessee will not get any deduction on account of these two expenses in the present year. To this extent, the order of the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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