Case Law Details
Case Name : Sabare International Ltd Vs DCIT (Madras High Court)
Appeal Number : Tax Case Appeal No. 237 of 2015
Date of Judgement/Order : 27/08/2024
Related Assessment Year : 2007-08
Courts :
All High Courts Madras High Court
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Sabare International Ltd Vs DCIT (Madras High Court)
Madras High Court held that expenditure claimed as capital expenditure cannot be claimed as revenue expenditure in the computation of income. Accordingly, appeal filed by the assessee dismissed.
Facts- The assessee has claimed a sum of Rs.2,38,89,114/-as deduct
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Author Bio
In such cases, it would be useful if the department, having disallowed this as ‘capital expenditure charged to revenue’, subsequently allows appropriate portion of the expense in following years in its own calculation (though the same will be contested by the assessee). The benefit would be that, if the case is finally disposed of (against the assessee) and the same accepted by the assessee, the latest assessment position (based on such expense being treated as revenue expenses), will be readily available from the latest year assessment and the assessee wont have to ‘re-calculate’ its earlier years’ total income’ going back to the past years, which sometimes becomes cumbersome and difficult, particularly if the Company is under MAT.