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2013 (12) TMI 1420 - HC - Income TaxWhether expenditure incurred in excavating a drain to discharge effluents is revenue or capital - Held that:- Following Commissioner of Income Tax V/s Glen View Rubber Co. (P) Ltd. [2007 (1) TMI 121 - KERALA High Court] - Any expenditure incurred in complying with statutory requirements particularly where the asset concerned would enure to the benefit of the assessee from year to year, would necessarily be an asset of enduring nature - Such asset should be categorised as capital expenditure - The mere fact that the land is not owned by the assessee, is irrelevant as by excavating the drain through forest land on the basis of approval granted by the Forest Department, the assessee has been able to overcome statutory requirements for release of effluents as prescribed under the Pollution Control Act - Expense incurred upon construction of the drain for release of effluents have conferred benefit of an enduring nature upon the assessee - Decided in favour of Revenue. Compensatory afforestation - Held that:- The assessee had offered gross amount of interest including TDS to tax in the Assessment year 1992- 93 - The assessee was not allowed credit for the TDS for want of TDS Certificates - The assessee could not obtain TDS certificates - Following Sutlej Cotton Mills Limited v. CIT [1978 (9) TMI 1 - SUPREME Court] - What is material is the factors or the circumstances which cause loss and the true nature and character of loss - If the loss occurred during the course of carrying on the business, it is incidental to it and hence allowable - The assessee having suffered loss, the expenditure had to be allowed as revenue expenditure - Decided against Revenue.
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