Section 37
Last updated: 25 October 2007
Court :
HC
Brief :
Held by the Hon`ble Court that, there are a number of tests which are required to decide whether the expenditure is revenue or capital in nature. A number of judgments cited before the court. However in the absence of requisite details regarding production capacity, we remit the matter to the commissioner (Appeals) who will decide the question in accordance with law.
Citation :
Ramaraju Surgical Cotton Mills Vs. C.I.T.
Section 37
Ramaraju Surgical Cotton Mills Vs. C.I.T.
08/21/2007
[2007] 294 ITR 328 (SC)
Case Fact:
Whether, replacement of assets without increase in production capacity amounts to revenue expenditure?
Decision:
Held by the Hon`ble Court that, there are a number of tests which are required to decide whether the expenditure is revenue or capital in nature. A number of judgments cited before the court. However in the absence of requisite details regarding production capacity, we remit the matter to the commissioner (Appeals) who will decide the question in accordance with law.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 61
Comments
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