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2010 (12) TMI 783 - AT - Income TaxDisallowance - Revenue or capital expenditure - assessee-company which is engaged in the business of manufacture, purchase and sale of hydraulic excavators etc., filed its return of income on 30-10-2004 declaring 'nil' income - The expenditure figure is very high but keeping in view the extent of the factory building of the assessee which is dealing with the manufacture of heavy machinery such as earth movers, the expenditure is reasonable - if only a new asset is created it could be said to be a capital expenditure and it is revenue expenditure when they are expenditure is to maintain, preserve and maintain already existing asset - the replacement of GC sheets and aluminium sheets is not to bring into existence any new asset or new advantage to the assessee - Held that: the expenditure has to be treated as expenditure for current repairs - Decided in the favour of assessee
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