Capital or revenue expenditure
Last updated: 07 July 2008
Court :
Brief :
Case Fact: Whether amount paid to stock exchange as non-refundable deposits for acquiring OTC membership is a capital expenditure or revenue expenditure?
Citation :
Neset Holdings P. Ltd. Vs. C.I.T.
Decision: Held by the Hon"ble court that as the membership and entry of a dealer in the OTC Exchange was only on payment of non-refundable deposits, upon the non payment of which the assessee would have been termed as an "inactive" member. This payment could not be treated as one of an "enduring nature" and thus was deductible as revenue expenditure.
CA. A. Kumar
Published in Income Tax
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