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2018 (10) TMI 1385 - HC - Income TaxNature of expenditure - fertility improvement program amongst milk animals - revenue or capital - Held that:- Unfortunately, neither Commissioner of Income Tax (Appeals) nor the Tribunal addressed the question of expenditure being capital in nature and focused entire attention on the allowability of the expenditure as business expenditure. Even the Assessing Officer has not cited detailed reasons as to why in his opinion the expenditure was capital in nature. We may note that the activities carried on by GCMMF under the said programme were all aimed at fertility improvement amongst milk animals. As part of the programme, the GCMMF would address the typical reasons for infertility such as improper practice in calf rearing, low body weight of animals, lack of nutrition/mineral, poor health condition, lack of awareness amongst farmers about improved breeding practices etc. The expenditure was general in nature and aimed at improving the practices for better fertility amongst milk animals by addressing the issues which caused infertility. The expenditure therefore was for the purpose of its business and would not be co-relatable to any tangible returns which can be expected out of such expenditure. There is therefore no reason to believe that such expenditure was revenue in nature - Decided against revenue.
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