Revenue expense with no enduring benefit allowable in the year of incurrence

DCIT Vs Hinduja Leyland Finance Ltd. (ITAT Chennai)

In the present case, entire expenditure has been incurred at the beginning of the sanctioning of term loan and also qualifies to be revenue expenditure. Therefore, in our considered view the decision of the Hon’ble Supreme Court in the case of M/s. Taparia Tools Ltd. (supra) is squarely applicable to the facts of present case and hence, we are of the considered view that learned CIT(A) was right on allowing deduction towards various expenses as revenue expenditure.

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