Development charges paid to SIPCOT allowed as revenue expense by deduction 5% every year

Hinduja Foundries Ltd. Vs ACIT (Madras High Court) Madras High Court held that development charges paid to SIPCOT not being capital asset doesn’t qualify for the claim of depreciation. However, the same qualifies as revenue expense and assessee entitled to claim deduction @5% as SIPCOT would deduct 5% every year. Facts- The present petition has been preferred by the petitioner mainly on the question of law that whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was not eligible to claim depreciation on sums paid to SIPCOT f...