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2015 (2) TMI 1285 - HC - Income TaxAllowable expenses u/s 30 - revenue expenditure or capital expenditure - The office at Kolkata was gutted by fire. The fire, as a matter of fact, continued for four days. Damages were of an extensive nature. The assessee after obtaining permission from the Fire Brigade Department entered into the burnt down office after four days. In repairing the office it incurred a little over a sum of ₹ 7 lakhs. Goa laboratory of the assessee was badly damaged by flood and cyclone which was also required to be repaired and in doing so the assessee incurred an expenditure of a sum of ₹ 3 lakhs approximately. Held that:- The assessing officer has no-where pointed out that by incurring expenditure the assessee has enhanced his capital assets. On the contrary, the finding is that the expenditure was necessary to repair the damage caused by fire. It was, therefore, clear case of a revenue expenditure. - Decided in favor of assessee.
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