CAPITAL OR REVENUE EXPENDITURE ::

Last updated: 09 November 2007

Court :
HC

Brief :
Held by the Hon`ble Bench that, the scheme was introduce for the overall skill level improvement and the only aim was to facilitate the carrying on the business more efficiently and more profitably. Therefore expenditure incurred for achieving optimum manpower utilisation is not capital expenditure.

Citation :
P.I. Industries Ltd. Vs. Asst. Commissioner of Income Tax

Capital or Revenue Expenditure P.I. Industries Ltd. Vs. Asst. Commissioner of Income Tax 07/28/2006 [2007] 294 ITR (AT) 206 (Jodhpur) Case Fact: Whether, expenditure incurred for achieving optimum manpower utilisation is capital expenditure? Decision: Held by the Hon`ble Bench that, the scheme was introduce for the overall skill level improvement and the only aim was to facilitate the carrying on the business more efficiently and more profitably. Therefore expenditure incurred for achieving optimum manpower utilisation is not capital expenditure.