Commissioner of Income-tax, Kolkata-IV, Kolkata v. M/s. B.O.C. India Ltd
[Citation -2014-LL-1126-3]
| Citation | 2014-LL-1126-3 |
|---|---|
| Appellant Name | Commissioner of Income-tax, Kolkata-IV, Kolkata |
| Respondent Name | M/s. B.O.C. India Ltd. |
| Court | HIGH COURT OF CALCUTTA |
| Relevant Act | Income-tax |
| Date of Order | 26/11/2014 |
| Judgment | View Judgment |
| Keyword Tags | voluntary retirement • revenue expenditure • capital expenditure • retirement scheme |
| Bot Summary: | The Court : At the time of admission of the appeal, the following question was framed: Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is correct in allowing payments under Voluntary Retirement Scheme of Rs.2,26,08,989/- on the ground that this constituted revenue expenditure while it was capital in nature as evident from section 35DDA of the Income Tax Act, 1961, inserted with effect from the next year, in terms of which the expenditure has to be spread over 5 years It would appear from the question itself that the expenditure would acquire the character of a capital expenditure with effect from the next year. In other words, the expenditure incurred in this case on account of Voluntary Retirement Scheme by the assessee, according to law, was of a revenue nature. The Tribunal was right in taking in view they did. Mr. Agarwal, 2 learned advocate for the appellant was unable to disclose any valid reasons as to why the assessee should be taxed otherwise than in accordance with law. For the aforesaid reasons, the issue raised by the appellant in the appeal is answered in the affirmative. |