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2012 (5) TMI 43 - HC - Income TaxExpenditure on current repair, maintenance and replacement on the leased Thermal power station - ITAT treated it as revenue expenditure and not a capital expenditure – Held that:- The basic test to find out as to what would constitute current repairs is that the expenditure must have been incurred to “preserve and maintain” an already existing asset, and the object of the expenditure must not be to bring a new asset into existence or to obtain a new advantage ”- No new asset came into existence and the expenditure was incurred to make the plant operational and functional - the clause of lease agreement conveys that what the assessee is entitled on the expiry of lease is only written down value of the additions and alterations to the building, station or additional machinery and none of the items represents addition or alteration to the building, station or additional machinery – against revenue.
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