Membership Fees Paid to Stock Exchange Allowed as Capital Expenditure

BGSE Financials Ltd. Vs DCIT (ITAT Banglore) The issue under consideration is whether the sum of admission fees paid to stock exchange will be allowed as capital expenditure? ITAT states that, ‘Capital expenditure’ is closely akin to the concept of securing something, whether tangible or intangible property, or corporeal or incorporeal rights, which confer lasting or enduring benefit to the enterprise. An expense made by a business to derive a long-term benefit is, therefore, generally treated as capital expenditure. The cases relied on by the learned A.R., had proceeded on the basis that ...