INCOME TAX ACT, 1961

Section 37(1)

Capital or revenue expenditure - Expenditure relating to setting up of new unit - -

Assessee claimed dedduction of expenditure relating to setting up of new unit at Sriperumbudur, AO disallowed the same as capital expenditure.Held: Expenditure relating to setting up of new unit had to be treated as revenue expenditure.

Followed:CIT v. Rane (Madras) Ltd. (2007) 293 ITR 459 (Mad) : 2007 TaxPub(DT0 1318 (Mad-HC), CIT v. Sakthi Sugars Ltd. (2011) 339 ITR 400 (Mad) : 2011 TaxPub(DT0 390 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 to 2014-15

INCOME TAX ACT, 1961

Section 14A(2)

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