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2014 (3) TMI 61 - AT - Income TaxNature of Expenses Capital OR Revenue expenditure maintenance of market yard - Held that:- The aim and object of the expenditure has to be looked into, which would determine the character of the expenditure, whether it is a capital expenditure or a revenue expenditure - the assessee earns income by making available marketing sites in various marketing yards - The expenses incurred above are incurred for facilitating proper maintenance of the same and thus the assessee earns income by doing so - The decision in CIT Versus AGRICULTURAL PRODUCE MARKETING COMMITTEE [2010 (9) TMI 156 - DELHI HIGH COURT] followed the expenditure incurred by the assessee was absolutely in the realm of revenue expenditure as there has been no construction which had enduring benefit to the assessee - it was difficult to say that the repairs carried out by the asseesee have any enduring benefit to its assets - the expenditure was recurring in nature and the assessee was required to do the same to carry out the business Decided against Revenue. Depreciation on capital expenses not allowed Held that:- The expenditure which is in the nature of capital is entitled to depreciation in accordance to law and the AO is directed to give consequential depreciation to the capital expenditure for which depreciation was not given - Other than that there was no merit in the contention of the assessee that certain items for which expenses was made by them was erroneously held as capital in nature by the CIT(A) there was no infirmity in the order of the CIT(A) Decided partly in favour of Assessee.
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