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2008 (3) TMI 433 - HC - Income TaxCapital or Revenue Expenditure – The assessee was appointed as the administrator of a company and it took over the management of the business of the company. For the deprivation of its business, the company was paid a sum of Rs. 122.79 lakhs for the period from October 22, 1965 to Aug. 1976 at Rs. 11.39 lakhs per annum by the assessee. The assessee claimed this amount as revenue expenditure, but the Assessing Officer and Commissioner (Appeals) disallowed it as capital expenditure. Tribunal held that it is revenue expenditure. Held that- moreover, no part of this amount of Rs. 122.79 lakhs was shown to have been intended to be being paid towards consideration for transfer of title, or property of the undertaking of the company. The expenses was deductible.
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