Revenue or capital expenditure

The Odisha High Court in 2009 delivered a decision where it was decided that, " goods imported from our of state of Odisha and not not manufactured within the state, the State is not authorised to levy ENTRY Tax on such goods. Upon Challange before The Hon,ble Supreme Court by the State , the S C has given decision in favour of the State. Thus a liability of Entry Tax is arised fronm 2009 to 2017. The assessee has deposited the entire liability of Entry Tax in the Fin. Year 2017-18.

So whether this liability will be debited in profit and  loss account  and claim loss in filling his return for the Asst. Year 2018-19 lor the payment will be deducted from Capital Account.

Authority cited on the issue is requested.

Replies (3)
in my view entry tax can be debited to Profit and loss account

In my opinion,the entire entry tax paid will be allowed as deduction as per section 43B.

 Deduction is admissible even if the expense is not charged to P&L a/c - Chemicals & Plastics (I) Ltd. v. CIT 260 ITR 193 (Mad).

Payment of purchase tax without provision is allowable as deduction - Associated Pigments Ltd. 234 ITR 589 (Cal.).

I have many doubts on capital expenditure. I have read many uk bestessays about tax and got some idea about the tax deductions. The government has to change tax on some goods which is really useful for everyone.

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