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2008 (1) TMI 385 - KARNATAKA HIGH COURTCapital versus Revenue Expenditure - The Commissioner of Income-tax on perusal of the records of the assessee, found that the claim of Rs. 5,00,000 being paid to SEBI during the assessment year as authorisation fee, had wrongly been allowed as revenue expenditure. Hence, he disallowed the sum of Rs. 5,00,000 deposited by the assessee as authorisation fee to SEBI was capital expenditure. This payment was made in order to meet the requirements of the Securities of Exchange Board of India Act, 1992. According to the appellate authority, payment was made only once. Hence, the expenditure incurred by the assessee rendered the assessee with a benefit of enduring nature and, therefore, treated it as capital expenditure. – Tribunal held that that the amount is revenue in nature and allowed the deduction – HC held that, ff the Revenue had been treating the amount of Rs. 5,00,000 deposited by the similarly situated assessees with SEBI as revenue expenditure, then there is no reason why a different treatment should be meted out to the present assessee – allowed as revenue expenditure.
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