Expense on development of Tools & Designs cannot be termed as revenue expense

DCIT Vs Sutham Electric Ltd. (ITAT Pune)

The solitary issue in the present case relates to the allowability of the expenditure incurred on development of Tools and Designs which are used in the business and manufacturing of automotive switch gears of Rs.3,75,00,000/- as revenue expenditure. This expenditure was shown as deferred revenue expenditure written off over a period of 10 years in the books of account.

It is settled position of law that the treatment given in the b

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