Addl. CIT, New Delhi M/s. Global Health (P) Ltd., New Delhi


Quick Summary
The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal concerning Global Health Private Limited regarding the assessment year 2012-13. The Revenue argued that a significant fee paid to HUDA was a one-time, enduring capital expenditure, not a deductible revenue expense. The Assessing Officer disallowed the deduction, treating it as a capital charge for obtaining permission to lease out property, citing precedent from the Supreme Court.

Court :
ITAT New Delhi

Brief :
Challenging the order dated 15/2/2017 in appeal No. 256/2016-17 passed by the learned Commissioner of Income Tax (Appeals)-39, New Delhi (“Ld. CIT(A)”) in the case of M/s Global Health Private Limited (“theassessee”) for the assessment year 2012-13, Revenue preferred this appeal stating that the expenses towards fees to HUDA is a one-time expenditure and the benefit arising out of this expenditure is of enduring in nature, and therefore it is not Revenue expenditure in its nature.

Citation :
ITA No.-3769/Del/2017

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