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2010 (5) TMI 831 - HC - Income TaxNature of expenditure - interest/expenditure allowed as revenue expenditure incurred for new unit which was a separate unit from existing unit and this new unit had not started production - HELD THAT:- Both, the Tribunal as well as CIT (A), have recorded concurrent findings of fact and come to the conclusion that the so called new unit was merely an expansion of the existing business of the assessee and was not setting up of a new business and as such the expenses incurred in this regard were allowable as revenue expenses. Considering the fact that the AO had not considered the claims of each of the items of expenditure incurred by the assessee from the angle as to whether the same were in the nature of revenue or capital expenditure, the matter has been restored to the AO to look into the nature of the expenses and consider as to whether the same are allowable u/s 36(1)(iii) or Section 37. In the circumstances, no infirmity can be found in the approach adopted by CIT (A) as confirmed by the Tribunal so as to warrant interference. The appeals are, accordingly, dismissed.
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