2017 (6) TMI 120 - HC - Income Tax

While admitting the appeal, HC formulated the following questions of law - (1) Whether the custom duty paid on the purchase of plant and machinery would be a capital or a revenue expenditure? (2) Whether the depreciation on the purchase of plant and machinery is admissible on the actual cost of the plant and machinery excluding the custom duty, which was paid subsequent? and (3) Whether the Income Tax Appellate Tribunal was justified in returning a finding on the question of deduction permissible on account of revenue expenditure even though no such plea was raised before it? The parties have advanced arguments on the above questions of law.

Summary

The High Court of Allahabad heard arguments regarding custom duty on plant and machinery. Questions of law formulated: 1) Capital or revenue expenditure? 2) Depreciation on actual cost excluding custom duty? 3) Tribunal's finding on revenue expenditure deduction without plea. Judgement reserved.