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2018 (12) TMI 704 - HC - Income TaxPre-operative expenditure - revenue or capital expenditure - assessee itself has treated the same as 'capital work-in-progress' in the balance sheet - Held that:- The Tribunal examined the nature of the expenditure and came to the conclusion that the expenditure was not incurred for a new business but was for the expansion of the existing business. The Tribunal relied upon its own decision in the case of Ms. Reliance Footprint Ltd. We noticed that the Revenue had challenged the judgment of the Tribunal in the case of Reliance Foot Print Limited came to be dismissed by this Court by judgment [2017 (7) TMI 611 - BOMBAY HIGH COURT]. The Tribunal correctly held both the issues in favour of assessee. Mere accounting entires in the books of accounts would not decide the taxability of the amount in question. The Tribunal also noted that the expenditure was incurred for expansion of existing business. Thus, this is a mere question of fact. No question of law, therefore, arises. Income Tax Appeals are dismissed.
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