Nature of expenses - AO incorrectly applied matching principle ...

AO Misapplies Matching Principle: Expense for New Assembly Line in Same Business Should Be Revenue, Not Capital.

August 10, 2022

Case Laws Income Tax AT

Nature of expenses - AO incorrectly applied matching principle for making disallowance, as he over looked the same line of business of the asessee where sales of vehicles are shown. In view of this, expenditure incurred by the assessee on setting up of a new line of assembly for manufacturing of commercial vehicle when assessee is already engaging in business of manufacturing commercial vehicle cannot be said to be capital expenditure. - Allowed as revenue expenditure - AT

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Nature of expenses - AO incorrectly applied matching principle ...

AO Misapplies Matching Principle: Expense for New Assembly Line in Same Business Should Be Revenue, Not Capital.

August 10, 2022

Case Laws Income Tax AT

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