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| The Tax Publishers2019 TaxPub(DT) 8014 (Rai-Trib) INCOME TAX ACT, 1961
Section 37(1)
By incurring expenditure repair and maintenance of road not belonging to it, assessee had also benefited and such expenses help in business of assessee and, therefore, expenditure was allowable as deductible under section 37(1) though road did not belong to assessee.
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Business expenditure - On upgradation/construction of link road from railway station to mines of assessee - Assessee also got benefited and expenses helped in business of assessee -
Assessee engaged in mining activities claimed deduction of expenditure incurred on upgradation/construction of link road from rialway station to mines of assessee. AO denied deduction on the ground that road did not belong to assessee.Held: By incurring expenditure repair and maintenance of road not belonging to assessee, assessee had also benefited and such expenses help in business of assessee and, therefore, expenditure was allowable as deductible under section 37(1) though road did not belong to assessee.
Followed:L.H. Sugar Factory & Oils Mills (P) Ltd. v. CIT (1980) 125 ITR 293 (SC) : 1980 TaxPub(DT) 1125 (SC) and Dy. CIT v. Integrated Coal Mining Ltd. [ITA. No. 788/Kol/2010, dt. 12-1-2010].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 1998-99
INCOME TAX ACT, 1961
Section 37(1)
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