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2021 (12) TMI 727 - CALCUTTA HIGH COURTNature of expenditure - Addition of Net Present Value - treating the Net Present Value as revenue expenses whereas true nature is capital expenditure - HELD THAT:- Substantial questions of law were considered by this Court in the case of group company of the respondent/assessee in dictum in Bikaner Gypsums Ltd. [1990 (10) TMI 2 - SUPREME COURT] is squarely applicable in the present case. This is not a case where the assessee, upon payment of the NPV, obtaind a fresh right to undertake any business. That right of the assessee was covered by the licence previously granted in its favour by the State of Odisha. The NPV payment is a king of a compensation for using forest land for non-forest purpose pursuant to an order of the Supreme Court. The payment of the NPV in this case, like in the case of Bikaner Gypsums Ltd., has to be regarded as a revenue expenditure in accordance with the ration in the Bikaner Gypsums Ltd. case, since it was a one-time payment made to remove an obstacle from the path of the assessee carrying on its business operations. - Decided against revenue.
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