Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 39 - CALCUTTA HIGH COURTExpenditure on development of machineries - revenue v/s capital - ITAT allowed the claim as revenue expenditure - Held that:- The sale of spare parts were not possible in the market since the assessee company did not want the technology information to its competitors. It is submitted that the A. O. has not disputed the expenses being incurred. He has made the disallowance merely because the details of spare parts used back in the business has not been furnished before him. It is submitted that separate charges for the value of these parts has not been made in the accounts and therefore, the original expense is allowable in full as per decision of B. Nagireddy v. CIT reported in [1991 (6) TMI 9 - MADRAS High Court]. - Decided against revenue. Disallowance of bank charges paid to guard against fluctuations in the foreign exchange rate for payment of loan taken for import of machineries - ITAT allowed the claim - Held that:- the consideration paid by the assessee to the authorized dealer of foreign exchange, which is the bank in this case, in order to obtain protection from fluctuation of foreign exchange rates is a revenue expenditure and the view taken by the learned Tribunal is correct. - Decided against revenue.
|