Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (10) TMI 308 - AT - Income TaxAddition of income – whether the designing charges amounting to Rs. 19,08,576/- were “Revenue” or “Capital” in nature - The appellant most humbly submits that on the facts and circumstances of its case and in law the subject expenditure is revenue in nature – Department contended that once a new product had come into existence by incurring the said expenditure, then the expenditure was nothing but a “Capital” expenditure - Considering the nature of the expenditure incurred by the assessee it can be safely decided that the upgradation or the improvement of an existing product, through which all in all a new product do not made, cannot be said to be an expenditure towards acquiring of a new asset, therefore, out of the ambits of the definition of capital expenditure – Appeal is allowed
|