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1973 (8) TMI 6 - DELHI HIGH COURTAssessee's claim for two of his expenditure items mentioned hereinafter, being allowed as revenue expense - first item relates to the assessee's proposal to construct a building, which, however, had to be abandoned as the land meant for the building was acquired by, the Government. All the same, the assessee had to pay a sum of Rs. 10,000 to Architects, for the preparation of the plan for construction of the building. The assessee claimed this to be revenue expenditure, but the Income-tax Officer rejected this claim - second item relates to the payment of a sum of Rs. 2,00,000 to the Maharastra Government as grant for the development of the port of Redi. This payment was claimed as part of the total expenditure incurred for facilities to labourers, so as to improve the business of the assessee-company. The Income-tax Officer disallowed the claim, as he considered the payment to be in the nature of a loan in the beginning and also because, he was of the view that it was not for any specific purpose connected with the assessee's business
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