Section 37 ::

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.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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