Tuesday, November 2, 2021

Exp. on expansion of business can’t be held capital exp. just because such expansion was termed as new business project

INCOME TAX : Where assessee-company incurred expenditure towards expansion of its existing business by way of a new project of starting a hotel chain, said expenditure was to be treated for purpose of carrying on existing business of assessee and, hence, allowable as revenue expenditure under section 37(1)

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000317014/exp-on-expansion-of-business-can’t-be-held-capital-exp-just-because-such-expansion-was-termed-as-new-business-project.aspx

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AO can’t disallow cost of improvement merely relying on enquiries made with assessee’s neighbour: ITAT

INCOME TAX : Where assessee had purchased a flat and incurred expenditure of Rs. 23 lakhs for purpose of renovating house and Assessing Offi...