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2002 (9) TMI 94 - HC - Income TaxCapital Or Revenue Expenditure - "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that payment of Rs. 45 lakhs for purchase of the unit was a capital expenditure and if it was a capital expenditure as held by the Tribunal then whether the Tribunal was justified in directing apportionment of the said amount as advance rent over a period of 71 years at the rate of Rs. 63,380 per annum as rent relatable to each year?" - we hold as follows: (a) That payment of Rs. 45 lakhs by the assessee was a capital expenditure and, therefore, the Tribunal erred in directing the Department to apportion/spread over the said amount for 71 years on proportionate basis, relatable to each year at the rate of Rs. 63,380 per annum, for 71 years. Consequently, the direction to that extent in para. 16 of the impugned order is set aside. Therefore, the appeal stands allowed. (b) Consequently, the cross-objections filed by the assessee stand dismissed.
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