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2020 (11) TMI 144 - HC - Income TaxLump sum payment for development of infrastructure for uninterrupted power supply - revenue expenditure u/s 37(1) - Whether Tribunal was right in holding that the lump sum expenditure incurred for obtaining uninterrupted power supply for 14 years is allowable in one year though the same will result in distorted profit of the assessee? - HELD THAT:- The instant case, though the assessee has parted with substantial funds to M/s.Ford India Private Limited, the capital asset continued to remain the property of M/s.Ford India Private Limited. Issue as to whether for the same asset, M/s.Ford India Private Limited claimed depreciation and the assessee is claiming exemption under Section 37 of the Act, cannot be a relevant factor. As rightly submitted by Ms.N.V.Lakshmi, learned counsel for the respondent/assessee that this was never the case of the Revenue before the authorities or before the Tribunal. Thus, we are of the considered view that the Tribunal rightly examined the nature of transaction and held that expenditure to be in the Revenue field. - Decided against revenue.
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