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2013 (10) TMI 417 - AT - Income TaxRevenue expenditure or capital expenditure - By contributing towards the bridge built by the State Government for replacing annual recurring expenses towards piling up of cement bags to prevent sea water entering into the premises of the assessee during rainy season, the assessee derived benefit of an enduring nature whereas, as per the assessee, the contribution is towards replacement of the recurring revenue expenditure – Held that:- Assessee does not have any ownership or right over the bridge constructed by the State Government. The assessee contributed towards part of the expenditure for construction of a bridge to prevent the sea water entering into the factory premises of the assessee which naturally hurt the commercial interest of the assessee and for which the assessee was making a certain recurring expenditure annually in preventing the sea water entering into its premises. Replacement of annual recurring expenditure by one time contribution is revenue expenditure - Expenditure did not bring any capital asset of an enduring benefit or advantage and the object of making the payment was purely one of commercial expediency – Decided in favor of Assessee.
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