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Factory Shift ≠ Capital Asset – ITAT Allows ₹1.13 Cr as Revenue, Calls Out “Enduring Benefit” Overreach
Case Law Details
- Case Name
- NPR Auto Parts Manufacturing India Pvt. Ltd. Vs ITO (ITAT Bangalore)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2017-18
- Courts
- All ITAT, ITAT Bangalore
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NPR Auto Parts Manufacturing India Pvt. Ltd. Vs ITO (ITAT Bangalore)
Factory Shift ≠ Capital Asset – ITAT Al-lows ₹1.13 Cr as Revenue, Calls Out “Enduring Benefit” Overreach
In NPR Auto Parts Manufacturing India Pvt. Ltd., the Bangalore ITAT examined whether factory shifting expenses (₹1.13 crore) from rented premises to owned premises are capital or revenue in nature.
The Assessing Officer and CIT(A) treated the ex-penses as capital, relying on the “enduring benefit” theory and decisions like Sitalpur Sugar Works.
However, the ITAT disagreed and held:
The assessee merely relo...
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