Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 619 - HC - Income TaxNature of expenses – capital or revenue - improvement towards furniture in the renting premises - tenancy rights - claim of 1/5 of the expenditure every year - Whether the expenses incurred by the assesse would be treated as capital expenditure or revenue expenditure and would be eligible for deduction or not – Held that:- The expenditure incurred by the assessee canot be treated as capital expenditure and is of revenue in nature – the assesse would also be eligible for getting deductions towards the tenancy rights - the Tribunal was not justified in ignoring the submissions of the appellant while upholding the orders of the lower authorities and the order of the Tribunal was perverse and unsustainable - Court relied upon the judgement of CIT v/s ASSOCIATED CEMENT Cos. LTD. (1988 (5) TMI 2 - SUPREME Court) - the payment made by the appellant to the vendor which resulted in the acquisition of no asset or right would still be treated as revenue expenditure - Tribunal was erred in not allowing the amount paid by the appellant as revenue expenditure in the A.Y. 1997-98 - the Tribunal was not right in disallowing 1/15th of the payment for the relevant year as originally claimed by the appellant – appeal decided in favour of assesse.
|