INCOME TAX ACT, 1961

Section 37(1)

Capital or revenue expenditure - No new asset created - Expenditure on maintenance of laboratory -

Authorized Representative of the assessee submitted that assessee had incurred expenditure of Rs. 4,20,747 in replacement of tiles of the laboratory. No new asset had come into existence nor any enduring benefit had been dervied by the assessee. The expenditure was incurred exclusively on maintenance of the laboratory.Held: In proceedings before the CIT(A), the assessee had categorically submitted that the expenditure was incurred on replacement of perforated ceiling tiles in the laboratory. It was apparent from records that the expenditure was incurred on maintenance of the laboratory caused due to normal wear and tear no new asset had come into existence, thus, the expenditure was in the nature of repairs and maintenance, and not on capital account.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2005-06

INCOME TAX ACT, 1961

Section 371(1)

SUBSCRIBE FOR FULL CONTENT