20 November 2012
sir , i have 1 doubt related to income tax deduction.If assessee has incurred an education expenditure , for upgrading the knowledge which will help him in his new project ...what will be nature of that expenditure? capital or revenue? can it be allowed as an expenditure u/s 37?
There is very thin line between judging any expenditure as Revenue / Capital. Expenditure incurred on education is revenue expenditure, & is allowable expenditure. But though it will help assessee to enhanced knowledge about new project, he can treat expenses on Books / software / technical fees paid etc. as capital expenditure. But it is challengeable assessee have to prove value addition to new project.
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