Periodic dredging to maintain existing jetty was revenue expense, not capital outlay: ITAT granted ₹4.49 Crore Relief

Dahej Harbour and Infrastructure Private Limited Vs ACIT (ITAT Mumbai) Conclusion: Expenditure of ₹4.49 crore incurred on maintenance dredging for removal of natural siltation and restoration of the existing operational depth of the jetty constituted revenue expenditure allowable under section 37(1). Accordingly, the disallowance made by AO and sustained by CIT(A) was deleted. Held: Assessee was engaged in the business of operating and maintaining a jetty, incurred expenditure of ₹4.49 crore towards maintenance dredging. Due to continuous silt deposition caused by strong tidal currents in...