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2018 (3) TMI 951 - AT - Income TaxAllowability of Production Registration Expenses (PRE) - nature of expenditure - revenue or capital - Held that:- To solve the knotty issue of capital/revenue expenditure the aim and object of the expenditure is to be considered not the quantum. As far as entries in the books of accounts and claiming depreciation in the earlier years is concerned, it is suffice to say that entries made in the books of accounts do not decide the true nature of expenditure. The issue of capital versus revenue expenditure has to be seen from the angle of an assessee rather than an AO. We find that in the cases of Panacea Biotech Ltd. (2012 (2) TMI 15 - DELHI HIGH COURT )and Cadila Healthcare Ltd (2013 (3) TMI 539 - GUJARAT HIGH COURT) has clearly held that PRE had to be allowed as revenue expenditure. - Decided in favour of assessee
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