Permit charges paid to Government for operating buses in respective state is revenue expenditure

A.R.A.P. Enterprises Pvt. Ltd. Vs ACIT (OSD) (ITAT Chennai) ITAT Chennai held that permit charges paid to Government to operate buses in the state is revenue expenditure. Accordingly, Pondicherry permit charges paid to Government of Pondicherry to operate buses in the state of jurisdiction of Pondicherry is allowable revenue expenditure. Facts- The assessee’s appeal is relating to disallowance of rates & taxes amounting to Rs.8,20,602/-. AO has disallowed payments made to Members Secretary, Pondicherry Planning Authority amounting to Rs.6,40,709/- and payment made to Mr.R.Viswanathan tow...