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2015 (3) TMI 1202 - AT - Income TaxProject development expenditure - Disallowance of claim for deduction u/s 37(1) in respect of revenue expenditure - Held that:- From the submissions made by the before the AO as well as Ld. CIT(A), it is seen that this was the second year of the operation of the company and business had already started. The operations from the revenue had been shown at ₹ 14,178 lakhs. Looking to the nature of expenses it can be very well held that these are routine expenses incurred during the course of operation of the business. The similar facts was there in the A.Y. 2008-09 also, wherein the Tribunal has held that these expenses cannot be held as capital expenditure but are revenue in nature and accordingly, the same were allowed. Even the Ld. CIT(A) has followed the earlier order of the Ld. CIT(A). Thus, following the earlier years precedence which are based on similar set of facts, we hold that the expenditure claimed by the assessee are revenue in nature and accordingly, ground raised by the Revenue stands dismissed. - Decided in favour of assessee.
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