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2018 (2) TMI 1294 - HC - Income TaxNature of expenditure - members’ fee paid by the appellant to the National Stock Exchange - revenue or capital expenditure - Held that:- Alembic Chemical Works Co. Ltd. Vs. Commissioner of Income Tax, Gujarat (1989 (3) TMI 5 - SUPREME Court), elucidates and affirms that a “once and for all payment”, when it brings into existence an asset or advantage of enduring benefit, in the absence of special circumstances leading to an opposite conclusion, is capital expenditure and not attributable to revenue. This is the primary and basic test. The appellant-assessee has not been able to show and establish any special circumstances for an opposite conclusion in the present matter. Further, the expenditure made was for acquiring and bringing into existence an asset or advantage of enduring benefit and not for running business to produce more profits. The question raised, it was observed, should be answered by adopting common sense and not legalistic and theoretical approach. In the context of the present case, “enduring benefit” test and “once and for all” payment test would be the most appropriate and proper tests to apply, though we would accept that there are exceptions to the said principles and these tests might break down in a given case. The expenditure incurred was for acquisition of property and rights of a permanent character. The enduring advantage was in the capital field. - Decided in favour of revenue
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