1990 (8) TMI 3 - SCH - Income Tax

Business Expenditure - whether the amount advanced by the assessee-employer for construction of houses under Subsidised Industrial Scheme for its employees would be in the nature of a revenue expenditure or capital expenditure - Tribunal was justified in concluding that it was revenue expenditure u/s 10(2)(xv) under IT Act 1922

Summary

The Supreme Court held that the amount advanced by the assessee-employer for construction of houses under a "Subsidised Industrial Scheme" for its employees is considered as revenue expenditure, not capital expenditure. The Tribunal's decision was upheld, and the appeal was dismissed with no costs.