The Commissioner of Income Tax v. South India Corporation Ltd.
Case brief
What is this about?
High Court of Kerala upheld the Income Tax Appellate Tribunal's order allowing preliminary expenditure for a failed tender submission as revenue expenditure, citing lack of enduring benefit and unity of business, dismissing the Revenue's appeal.
What did the court decide?
The appeal is rejected and the order of the Tribunal is upheld.
What the court decided
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN
&
THE HONOURABLE MR. JUSTICE ASHOK MENON
FRIDAY ,THE 25TH DAY OF JANUARY 2019 / 5TH MAGHA, 1940
ITA.No. 1188 of 2009
AGAINST THE ORDER/JUDGMENT IN ITA 1212/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 16.2.2007
APPELLANT/S:/RESPONDENT/ASSESSEE:
THE COMMISSIONER OF INCOME TAX COCHIN.
BY ADV. SRI.JOSE JOSEPH, SC FOR INCOME TAX
RESPONDENT/S:/APPELLANT/ASSESSEE:
Issues for consideration
1 issue framed by the court
Whether preliminary expenditure incurred by the assessee for submitting a tender for a BOT project can be allowed as revenue expenditure when the assessee was venturing into a new line of business.
Parties & counsel
- appellant
The Commissioner of Income Tax Cochin
- respondent
South India Corporation Ltd.
Coram
K.Vinod Chandran
Case details
As recorded by the court registry
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