Section 201A of the Income Tax Act
The decision most relied on for Section 201A is CIT v. Associated Cement Companies Ltd. (172 ITR 257), cited in 126 of the 35 judgments on BharatTax that turn on this section.
Leading authorities on Section 201A
An expenditure is classified as either capital or revenue; the 'enduring benefit' test is a key criterion for this distinction, and income tax law does not generally recognize deferred revenue expenditure unless specifically provided.
A person entering into a works contract with an enterprise eligible for deduction under Section 80-IA is not entitled to claim the tax benefit under Section 80-IA of the Act.
Expenditure incurred for acquiring a commercial advantage, such as for the construction of a jetty used for handling business materials, is considered revenue expenditure even if ownership remains with the state government.
A consortium may not be treated as an Association of Persons (AOP) depending on the facts and circumstances of the case, and if the income has been assessed in the hands of the assessee with corresponding TDS credit, the assessee may not have an obligation to deduct tax at source.
