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Routine Repairs & Maintenance Allowed as Revenue Expense Due to No Enduring Benefit
Case Law Details
- Case Name
- Natural Capsules Limited Vs ITO (ITAT Bangalore)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2017-18
- Courts
- All ITAT, ITAT Bangalore
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Natural Capsules Limited Vs ITO (ITAT Bangalore)
Routine Repairs ≠ Capital Spend: ITAT Bangalore Allows Plant Repairs & Share-Related Professional Fees
The Bangalore SMC Bench of the ITAT partly allowed the appeal of the Assessee-company and deleted disallowances on repairs & maintenance of plant and machinery as well as professional charges, holding both to be revenue expenditure allowable u/s 37(1).
AO had treated substantial repairs and maintenance expenses as capital in nature and made an ad-hoc disallowance of 20% of professional fees, alleging linkage with increase in share cap...
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