KIDS CLINIC INDIA PRIVATE LIMITED,BANGALORE vs. ADDL.C.I.T., BANGALORE
In the result, the appeal of the assessee is partly allowed
ITA 784/BANG/2016[2011-12]Status: DisposedITAT Bangalore22 Jan 2021AY 2011-12
Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranassessment Year :2011-12 M/S.Kids Clinic India Pvt. Ltd., Vs. The Additional Commissioner Of Income Tax, No.1533, 9Th Main, Range - 5,Bengaluru. 3Rd Block, Jayanagar, Bengaluru – 560 071. Pan : Aacck 7678 R Assesseee By : Shri. Nageshwar Rao, Advocate : Revenue By Shri. Tshering Ongda, Jcit(Dr)(Itat), Bangalore Date Of Hearing : 19.1.2021 Date Of Pronouncement : 22.1.2021 O R D E R
Section 143(3)Section 40A(2)(a)
…on of the business, the expenditure should be regarded as revenue expenditure - Empire Jute Co. Ltd. vs. CIT [1980] 124 ITR 1 (SC)/CIT vs. Hinthisthan Gpneral Flectrical Corpn. Ltd. [1971] 81 ITR 243 (Cal.)/CIT vs. Oblum Electrical Industries (P.) Ltd. [1981] 127 ITR 409 (AP). 15. In the light of the judicial decisions referred to above, we are of the view that the payment in question was owing to commercial expediency and enabled the assessee to avoid payment of future licence fee and thereby reduced the operating cost of the assessee. Such payment cannot be regarded as a capital expenditure. We, therefore, hol…
