Non-exclusive use Technology Payment for Passenger Car Seats: Revenue Expenditure

Lear Automotive India Private Limited Vs ACIT (ITAT Pune) Introduction: The Income Tax Appellate Tribunal (ITAT), Pune, in a recent verdict, clarified the nature of certain types of expenses in the case of Lear Automotive India Private Limited Vs ACIT. The key point of contention was the classification of Engineering Research and Development cost, and whether it was capital expenditure or revenue expenditure. Analysis: In the appeal, Lear Automotive India contended that the Rs.3,90,45,945/- spent on Engineering Research and Development should be considered as revenue expenditure. However, the ...