AO cannot treat a revenue expense as capital without showing any justifiable grounds

DCIT Vs Quippo Oil And Gas Infrastructure Ltd (ITAT Delhi)

The assessee-company is engaged in providing plants and machinery, mobile drilling rigs, equipment and other related services to oil and gas industry. The assessee during the year has entered into contract with Jubilant Oil and Gas Pvt. Ltd. On perusal of the terms of the contract, it was observed that while the payment terms are clearly specified and there does not appear to be any reimbursement of expenses relating to repair and maintenance specified therein.

Please become a Premium member. If you are already a Premium member, login here to access the full content.