Section 37 ::

Last updated: 18 December 2007

Court :
HC

Brief :
Held by the Hon`ble Court that, the new unit was a part of the existing business moreover unity of control and inter-lacing of the units is also there. Therefore expenses incurred regarding setting up of the new unit which was part of the existing business is allowed as revenue expenditure.

Citation :
C.I.T. Vs. Relaxo Footwears Ltd.

Section 37 C.I.T. Vs. Relaxo Footwears Ltd. 04/25/2007 [2007] 293 ITR 231 (Delhi) Case Fact: Whether, pre-operative expenses are allowable as a revenue expenditure? Decision: Held by the Hon`ble Court that, the new unit was a part of the existing business moreover unity of control and inter-lacing of the units is also there. Therefore expenses incurred regarding setting up of the new unit which was part of the existing business is allowed as revenue expenditure.