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2011 (8) TMI 1159 - AT - Income TaxNature of Compensation paid to Forest Department - payment as Net Present Value (NPV) as per the direction of Apex Court for smooth running of business / mines activities - Captial or Revenue Expenditure - Allowable u/s 37(1) or not? - Assessee claimed that this expenditure was obligatory in nature - CIT(A) considered it as revenue expenditure - HELD THAT:- It is relevant to state that facts and the issue involved in this appeal before us are identical to the facts and issue in ASSISTANT COMMISSIONER OF INCOME TAX VERSUS RUNGTA SONS (P) LTD [2014 (1) TMI 1515 - ITAT KOLKATA]. Following the decision in the said case, we hold that the said expenditure is paid by the assessee as NPV to the Divisional Forest Officer to enable the assesee to carry on its mining business is revenue in nature, which is allowable as business expenditure under section 37(1) of the Act. Therefore, we uphold the order of ld. CIT(Appeals)
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