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2013 (12) TMI 716 - AT - Income TaxProject Development Expenditure - Capital or Revenue - Held that:- The assessee-company is expanding its already started line of business by expanding its scale of operation - Following M/s Reliance Footprint Ltd V/s ACIT [2013 (12) TMI 161 - ITAT MUMBAI] - The question that whether the Assessee is entitled to a particular deduction or not will depend on the provisions of law relating thereto and not on the view which the Assessee might take of his own rights; nor can the existence or absence of entries in his books of account be decisive or conclusive in the matter - The said expenditure were incurred towards salary to the employees, travelling and conveyance, telephone expenses, professional fees paid, audit fee and other miscellaneous expenses towards registration as stamp duty charges, license application fees, repair and maintenance etc - Such expenses cannot be said to have generated any capital advantage to the assessee and the same is in the nature of revenue expenditure irrespective of the fact that the assessee has given dual status of such expenditure in its books of account and computation of income claiming it as revenue expenditure - Following Asahi India Safety Glass Limited [2011 (11) TMI 2 - DELHI HIGH COURT] - The expenditure which is incurred, which enables the profit making structure to work more efficiently leaving the source of the profit making structure untouched is an expense in the nature of revenue expenditure - The expenditure under consideration incurred by the appellant for expansion of the existing line of business or for maintenance and operation of the already established stores is an allowable deduction under section 37 - Decided against Revenue.
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