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| The Tax Publishers2020 TaxPub(DT) 2580 (Chd-Trib) INCOME TAX ACT, 1961
Section 37(1)
Line/bay charges had been incurred for augmenting business activities of assessee-company and ownership of assets so created vested with State Electricity Board and amount was not refundable at any stage, accordingly line/bay charges were allowable as revenue expenditure.
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Capital or revenue expenditure - Line/bay charges paid to State Electricity Board - -
Assessee claimed deduction of line/bay charges paid by it in relation to its unit Anant Spinning Mills and Vardhman Yarns, both located under Madhya Pradesh Electricity Board. Held: Line/bay charges had been incurred for augmenting business activities of assessee-company and ownership of assets so created vested with State Electricity Board and amount was not refundable at any stage, accordingly line/bay charges were allowable as revenue expenditure.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
INCOME TAX ACT, 1961
Section 14
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