Contribution to Compensatory Afforestation Fund is revenue expenditure: Bombay HC

PCIT-2 Vs Tata Steel Ltd (Bombay High Court) The recent legal battle between PCIT-2 and Tata Steel Ltd before the Bombay High Court revolved around the treatment of Tata Steel’s substantial contribution to the Compensatory Afforestation Fund (CAF). The verdict of this case not only impacts Tata Steel but also sets a precedent for similar disputes in the future. The core contention of the case lay in the classification of Tata Steel’s contribution of Rs. 212.52 crores to the Compensatory Afforestation Fund. The Income Tax department, represented by the PCIT-2, contended that this co...