The Tax Publishers2020 TaxPub(DT) 0966 (Mum-Trib)

INCOME TAX ACT, 1961

Section 37(1)

Though, expenditure was incurred by the assessee was for valuation of the assets, however, such expenditure, per se, was not for acquiring any capital asset, therefore, same was allowable as revenue expenditure.

Capital or revenue expenditure - Charges paid for valuation of business purchased by assessee - -

Assessee claimed deduction of charges paid for valuation of the business purchased by it from M/s. M & M Ltd. AO holding the same to be of capital in nature disallowed deduction.Held: Though, expenditure was incurred by the assessee was for valuation of the assets, however, such expenditure, per se, was not for acquiring any capital asset, therefore, same was allowable as revenue expenditure.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 & 2010-11

INCOME TAX ACT, 1961

Section 32(1)(ii)

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