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TMI Blog2010 (8) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... dent-assessee had neither acquired an income earning asset nor did it obtain any enduring advantage. Moreover, the aforesaid expenses are clearly relatable to the business of the respondent-assessee. - 815/2010 - - - Dated:- 11-8-2010 - Through Ms. Suruchii Aggarwal with Mr. Anish K.V., Advocates Through None CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's order, which reads as under:- "The assessee's submissions have been considered and are not acceptable. From the nature of expenditure incurred it can be seen that out of Rs.18,50,967/- the expenditure totaling to Rs.12,07,907/- has been spent on account of Sturdy on Bitumen, Water Proofing, Feedback Reports etc. which will give the assessee benefit of enduring in nature and thus is treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the capital expenditure. 6. In fact, the test to determine whether an expenditure is capital or revenue has been outlined in a number of judgments. The Supreme Court in Commissioner of Income Tax Vs. Madras Auto Service (P.) Ltd. (1998) 233 ITR 468 has laid down general principles applicable for determining whether a particular expenditure is capital or revenue one. The general pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital was withdrawn, or, in other words, whether the object of incurring the expenditure was to employ what was taken in as capital of the business. Again, it is to be seen whether the expenditure incurred was part of the fixed capital of the business or part of its circulating capital." 7. A Division Bench of this Court in Hindustan Times Ltd. Vs. Commissioner of Income Tax, New Delhi (1980 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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