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2003 (6) TMI 10 - HC - Income TaxCapital/Revenue expenditure - Actual cost of assests – Depreciation - payment of gratuity to these employees till the date of transfer was deferred by reason of the terms of the agreement and the liability accrued till that date and payable by the transferor was taken over by the assessee. Thus, this liability became part of the consideration paid for the assets transferred and is liable to be added to the consideration mentioned in the agreement. It cannot be construed otherwise. This is to be treated as capital expenditure – Thus, Tribunal was justified in law in directing to recompute the cost of the assets treating the gratuity liability as part of the actual cost of the assets and allow depreciation accordingly
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