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TMI Blog2013 (10) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... reated as business expenditure. But, if a new asset has come into existence which was of enduring benefit, then such expenditure would be of capital nature – In the present case, feasibility report was for the same and subsisting business with common administration and fund – Further, no new asset was created – Decided against the Revenue. - ITA No.50/2001 - - - Dated:- 12-9-2013 - Sanjiv Khann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment itself suggested that the expense was capital in nature and character. 4. Before the Commissioner of Income Tax (Appeals), the assessee had submitted that they were examining viability and feasibility of having their own captive carrier in order to run business more efficiently and smoothly. The idea was to increase efficiency of the existing running business. Plea was however rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out, in relation to the existing business set up and only to manage the affairs better, efficiently and smoothly. It was not for expansion into a new business. 7. Whether expenditure is capital or revenue in nature is not easy to decipher and tests can be elucidated but their application to facts is difficult and cumbersome. Enduring benefit test is normally applied but it is not a univer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of treatment of feasibility report expenditure. It has been opined that if expenditure was incurred for starting a new business which was not in existence and was not carried out by the assessee earlier, then the expenditure on procuring feasibility report may be capital in nature. In such cases, it would be immaterial whether ultimately the project materialized or not. However, if the expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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