Capital Or Revenue Expenditure ::
Last updated: 05 October 2007
Court :
HC
Brief :
Held by the Hon`ble Court that, explanation 1 of section 32(1) does not apply in a case of construction on the land which is taken on lease by the assessee, assessee did not acquire a capital asset but had put up a construction of the building only for business advantage. Therefore entire construction cost was admissible as revenue expenditure.
Citation :
C.I.T. Vs. TVS Lean Logistics Ltd.
Capital Or Revenue Expenditure
C.I.T. Vs. TVS Lean Logistics Ltd. 07/27/2007
[2007]293 ITR 432 (Mad)
Case Fact:
Whether, construction of building on leasehold is capital expenditure?
Decision:
Held by the Hon`ble Court that, explanation 1 of section 32(1) does not apply in a case of construction on the land which is taken on lease by the assessee, assessee did not acquire a capital asset but had put up a construction of the building only for business advantage. Therefore entire construction cost was admissible as revenue expenditure.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 57
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