13 June 2009
Answer to third para of your query is as follows:- 1)In deciding whether a particular expenditure is capital or revenue in nature what has to be seen is whether the expenditure in question was incurred to create any new asset or was incurred for maintaining the business of the assessee. Citation:- Dalmia Jain & Co Ltd Vs CIT (1971) 81 ITR 754(SC) 2) If the expenditure is made for acquiring or bringing into existence an asset or advantage for the enduring benefit of the business, it is properly attributable to capital and is of the nature of capital expenditure. Citation:-Assam Bengal Cement Co Ltd Vs CIT (1955) 27 ITR 34 (SC).