The key issue relates to the classification of the cost of silt ...

Expense classification dispute: Silt cost as revenue v/s capital expenditure for stone quarrying business.

Case Laws Income Tax

September 7, 2024

The key issue relates to the classification of the cost of silt as capital or revenue expenditure. The Assessing Officer (AO) treated it as capital expenditure and disallowed it, while the assessee claimed it as revenue expenditure. The assessee's contention is that the cost of filling pits with silt, a byproduct of stone extraction, is a recurring activity and hence a revenue expenditure. The CIT(A) agreed that the assessee utilized existing silt without purchasing new material, making it a revenue expenditure. The assessee valued the stock as per accepted trade practices and accounting standards, without any mala fide intention. Relying on relevant judicial precedents, the ITAT allowed the assessee's grounds, treating the cost of silt as revenue expenditure.

View Source

← Previous Next →

The key issue relates to the classification of the cost of silt ...

Expense classification dispute: Silt cost as revenue v/s capital expenditure for stone quarrying business.

Case Laws Income Tax

September 7, 2024

You may also like:

Bond issue expenses - Capital or revenue in nature - held as revenue expenditure - AT

Nature of expenses - Litigation expenses - Revenue or capital expenditure - In the present facts, since assessee has no interest in the ownership of the asset but he is...

Media cost for import of software - Capital expenditure or revenue - Software used for duplication and licensing - expenses allowed as revenue expenditure - HC

Revenue expenditure or capital expenditure - Allowability of expenses on acquisition of clientele and technical human resource i.e., employees to execute the contract -...

Disallowance of contingency expenses claimed by the assessee. The Assessing Officer (AO) disallowed the contingency expenses despite acknowledging that the total cost...

Allowance of hoarding expenses - capital expenditure or revenue expenditure - deduction on account of hoarding expenditure being in the nature of revenue expenditure allowed - AT

Classification as Revenue or Capital Expenditure – Expenses for transmission - Establishment and maintenance expenditure – It is only in respect of construction and the...

Nature of expenses - Relaunch expenses - deferred revenue expenditure claimed to the extent of 1/3rd in each of the year -The tribunal disagreed with the AO's...

Revenue expenditure versus capital expenditure - expenditure incurred on ERP Software – allowed as revenue expenditure - AT

Capital expenditure or revenue expenditure - the expenditure incurred in regaining this profit company unit is in the nature of a capital expenditure and not the revenue...

Disallowance of pre-operating expense for a “Mawa Project” - revenue v/s capital expenditure - expenditure incurred for expansion of the dairy business of the assessee -...

Software expenses - revenue or capital expenditure - real intent and purpose - expenditure incurred by the assessee on software is allowable as revenue expenditure. - AT

Revenue or capital expenditure - current repairs u/s 31 - overhead expenditure on construction - deductionallowed - AT

Capital expenditure or Revenue expenditure - Demutualization expenses - It is true that such expansion of the capital base of the company was required to fulfill the...

Nature of expenditure - Whether expenditure incurred by the assessee like stamp charges, loan processing fee on term loan, marketing fees, sourcing expenses, share issue...

Quick Updates: