Complete Guide to the Income Tax Act 1922

 

Income Tax
Act, 1922

 

Section—10 (2)(XVI)

The expenditure is a capital when it is in-
cuffed for securing capital assets or advantage of enduring benefit to the
business. But when it is spent for running the business, it becomes revenue
expenditure:

The
Commissioner of Taxes, Chittagong (South) Zone, Chittagong, Vs. Chittagong Jute
Manufacturing Company Ltd., 13 BLD (HCD) 384.

Ref:
Raja Bijoy Singh Dudhuria Vs. C.I.T. (1933)UTR. 135; C.I.T. Vs. Travancore
Sugar and Chemicals Ltd. (1973)19 I.T.R 307; C.I.T. vs. S.M.T. Kamalabai
Juthalal (1977) 108 ITR 755; C.LT. Vs. Sitaldas Tirathdas, (1961)41 ITR
367-Cited.