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2014 (10) TMI 102 - HC - Income TaxClassification of expenses - Expenses on wooden partitions, electric wiring, power connections, interior layout and carpeting - Revenue expenditure or capital expenditure – Held that:- The expression is so typical and complicated that it is difficult to define it with an amount of certainty - Much would depend upon the facts and circumstances of the case in which the question arises – assessee is a lessee of a building - The business premises naturally needed certain alterations and works of arranging partitions extending electricity supplies carpeting, wherever needed was arranged - even while claiming that the expenditure is revenue, in nature, the revenue claimed depreciation on it – Following CIT vs. Madras Auto Service Private Limited [1998 (8) TMI 1 - SUPREME Court] In order to decide whether this expenditure is revenue expenditure or capital expenditure, one has to look at the expenditure from a commercial point of view - the assessee made substantial savings in monthly rent for a period of 39 years by expending these amounts - the assessee did not get any capital asset by spending the amounts - The assessee could not have claimed any depreciation - Looking to the nature of the advantage which the assessee obtained in a commercial sense, the expenditure appears to be revenue expenditure – Decided against revenue. Perquisites to employees – Held that:- The Tribunal rightly held that the amount allowed towards perquisites can be ₹ 500/- per employee and not more than that - there was no binding precedent handed out by the constitutional Courts – Decided against revenue.
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