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.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 64
Comments
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