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2012 (12) TMI 572 - ITAT AHMEDABADCapital expenditure or revenue expenditure - huge expenditure towards machinery / plant made, which extended the life time - the assessee is engaged in the business of manufacturing of automotive gaskets, radiators & CFJS at its units. - held that:- Expenses that were incurred on purchase of band knives for use in splitting machine. - The nature of the item indicates that it is spare parts which require frequent replacement. - the expenditure was incurred on removing the roller jammed in order to make it functional. Therefore, this amount was also considered as revenue expenditure. - In respect of item No. 4, no new asset came into existence which was capable of producing any saleable items. - Decided in favor of assessee. Remuneration to Direction - disallowance u/s 40A(2)(b) - held that:- Shri R.R. Biswas is a qualified person and he was employed in a professional capacity with the assessee-company and there was increase in the sales by 26.87% in the current year as compared to earlier year, this finding of the fact is not rebutted by the Revenue - Expenditure allowed - Decided in favor of assessee.
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