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2014 (7) TMI 838 - AT - Income TaxAcquisition of brand - Payment made for Legal and professional fees – revenue expenses or capital expenses – Held that:- The “brand” expenditure incurred by the assessee has been treated as capital expenditure - The expenditure incurred on the feasibility report paid to M/s J Sagar Associates constitutes legal expenses incurred by the assessee to ensure about the proper acquisition of the “Brand” - This is in the nature of consultancy - assessee is already in the line of chain of restaurants and food joints - The acquisition relating to “brand” of M/s Blue Foods Pvt Ltd is also with respect to food chain, is expenditure is incurred by the assessee in the existing line of its business - the expenditure incurred on consultancy have been held in COMMISSIONER OF INCOME TAX Versus M/s. SHELL BITUMEN INDIA (P) LTD. [2010 (8) TMI 19 - DELHI HIGH COURT] on account of revenue expenditure – there was no infirmity in the order of CIT(A) which it has been held that the expenditure were in the nature of revenue and could not be disallowed as capital expenditure – Decided against Revenue.
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