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2015 (7) TMI 1235 - AT - Income TaxExpenditure on creation of new cabins in business center - revenue in nature OR capital in nature - Held that:- The issue is squarely covered in favour of the assessee by the finding of the Tribunal in the own case of the assessee for A.Y. 2007-08 the expenditure incurred by the assessee for maintaining furniture, fixtures etc. for running the business center were Revenue in nature and thus allowable has been upheld by the Hon’ble Bombay High Court. Thus, the issue is now squarely covered by the decision of the Hon’ble Bombay High Court in the own case of the assessee. Thus, the claim of the expenditure by the assessee on this issue for A.Y. 2005-06, 2006-07 & 2010-11 is accordingly allowed. Disallowance of prior period expenses - AO disallowed an amount claimed as business promotion expenses on the ground that the same pertained to the period prior to the assessment year under consideration - Held that:- CIT(A) correctly relying upon the decision of the ITAT Delhi Bench in the case of “Goetze India Ltd. vs. CIT” [2007 (7) TMI 341 - ITAT DELHI-C] held that since the quantum of actual liability was crystallized during the year under consideration, hence the expenditure was allowable during the current year. He, therefore, deleted the disallowance. - Decided in favour of assessee
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