Case Law Details
Brief of the case:
In the case of M/s NYK Line (India) Ltd Vs. Addl. CIT Mumbai Bench of ITAT have held that payment made to professional firm for conducting a Feasibility Study Report for establishing a BPO business for assessee’s own function, cannot be treated as capital expenditure, or for non business purpose or any kind of pre-operative expenses. It was held that nothing has been brought on record that some kind of new line of business was to be set up or was to be controlled by different management. In assessee’s case BPO business could not take off and whatever expenditure has been incurred has to be allowed either as business expenditure or as a business loss incurred during the course of business.
Facts of the case:
- Assessee is a shipping agent in respect of shipping activity of its principal, NYK Japan in India.
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