Expenditures for value addition and for competing in the market are revenue Expenditure

ACIT Vs. Kannappan Iron and Steel Co. Pvt. Ltd. (ITAT Chennai)- The Tribunal found that the expenditures were not incurred for setting up of any business or initiating an expansion programme. The expenditures were incurred as a measure of value addition and for competing in the market. There was no basic improvement in the fundamental character of product already manufactured and processed by the assessee. It was in the light of those findings, the Tribunal has held that the disputed expenditures were in fact revenue in nature.Please become a Premium member. If you are already a Premium member, login here to access the full content.