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2010 (4) TMI 826 - AT - Income TaxCapital or revenue expenditure - effluent plant repair and maintenance expenses - Assessing Officer found that this amount was paid towards capital of Ranitec who is the agent acting on behalf of a number of entrepreneurs in installing plant which is giving enduring benefits to all the units. It was also found that in case the treatment plant was installed by the assessee itself the entire expenditure would have been capitalised, tannery unit situated at Ranipet has just complied with the directions of the Tamil Nadu Pollution Control Board so as to run the unit and thereby contributing its share to Ranitec would amount to revenue expenditure only because it is necessary for the survival of the business of the assessee-company - Held that:- Commissioner of Income-tax (Appeals) that this can be treated as an expenditure incurred on account of business exigency. deletion confirmed.
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