Expenses related with improvement in operations of existing business product line is revenue expense

Brief of the case: Madras High Court in the case of CIT Vs M/s Southern Petrochemicals Industries Corporation Ltd held that market research expense incurred to increase the efficiency of the existing business product line, the same should be treated as revenue expense. Neither the new plant had been installed nor the new product had been launched so the market research expense should be treated as revenue expense. Facts of the case: The assessee filed its return of income claiming Rs 75,91,000/- as a revenue expense under head “Market research” which AO disallowed on the basis that the abo...