The assessee's contribution to the Compensatory Afforestation ...

Compensatory Afforestation Fund contribution is revenue expenditure, not capital, as per court rulings.

Case Laws Income Tax

September 17, 2024

The assessee's contribution to the Compensatory Afforestation Fund (CAF) is a revenue expenditure, not capital expenditure. This issue is settled, as the Bombay High Court in Dr. Prafulla R. Hede's case accepted that CAF contribution is revenue expenditure. The Supreme Court dismissed the Revenue's Special Leave Petition against Dr. Prafulla R. Hede's case, upholding the High Court's decision. Consequently, no substantial question of law arises regarding the allowability of CAF contribution as a revenue expense.

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The assessee's contribution to the Compensatory Afforestation ...

Compensatory Afforestation Fund contribution is revenue expenditure, not capital, as per court rulings.

Case Laws Income Tax

September 17, 2024

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