Commissioner of Income-tax-1, Chandigarh v. Punjab Small Industries & Export Corporation Ltd
|Commissioner of Income-tax-1, Chandigarh
|Punjab Small Industries & Export Corporation Ltd.
|HIGH COURT OF PUNJAB & HARYANA
|Date of Order
|development expenditure • expenditure incurred • revenue expenditure • revenue neutral • tax effect
|AJAY TEWARI, J. 1 This appeal has been filed under Section 260A of the Income Tax Act, 1961 against the order dated 30.05.2008 of the Income Tax Appellate Tribunal, Chandigarh passed in ITA No.566/CHD/2007 for the assessment year 2004-05. 2 Following question of law is claimed:- Whether on the facts and in the circumstances of the case, the ITAT was right in law in upholding the order of the CIT(A) that the expenditure incurred in Maintenance of focal points and development expenditure over and above the estimate was revenue expenditure. 3 The dispute was as to whether expenditure for maintenance of focal points was revenue in nature or not. The assessing officer held the expenditure to be capital in nature and granted 10 depreciation. The Commissioner of Income Tax reversed the order and held the expenditure to be revenue in nature. With the passage of time, the dispute as to whether expenditure was revenue or capital in nature has become revenue neutral as even if it is capital in nature by claiming depreciation, no tax effect is left. 4 In the circumstances, the appeal stands disposed of keeping the questions of law open.