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2011 (7) TMI 320 - AT - Income TaxExpenditure for preparation of Maps - enduring benefits - capital versus revenue expenditure - assessee got prepared maps of tea garden on the Grants and Patta lands. - Revenue submitted that there is an enduring benefit to the assessee in respect of survey and preparation of maps prepared for entire tea garden. Hence, the expenditure is capital in nature. - Held that:- the said payment aggregating to Rs.7,06,500/- paid by the assessee is wholly and exclusively for the purpose of its business and it does not form/create any assets. The said expenditure is revenue in nature. Prior period expenses - Payment of arrear wages - the Circular No.73 dated 22/08/2001 of the Tea Association of India filed by the Assessee along with the written submission for the Revision of Pay scale for Sub-staff effective from April, 2000 and on the basis of the said memorandum of understanding Assessee had made the Payments of Arrear wages - the liability for payment of earlier period wages has been crystallized on 22-08-2001 and not on 28.03.2001 as observed by the Assessing Officer. - Decided in favour of assessee. Cultivation expenses - Capital expenditure or revenue expenditure - Shade trees cutting - Uprooting jungle plants - Irrigation - held that:- these expenses are revenue in nature and not on capital account.
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