CIT v. Salgaocar Mining Industries (P.) Ltd. (2019) 265 Taxman 317 (Bom.) (HC)

S. 37(1) : Business expenditure-Contribution to State Government towards construction of a bridge-Allowable as revenue expenditure.

Assessee made contribution to State Government who had asked mining companies to contribute towards construction of a bridge which would be used by them for transportation of their goods and claimed as revenue expenditure. AO treated the said expenditure as capital expenditure which was up held by the CIT(A).  Tribunal allowed the expenditure as revenue expenditure. On appeal by the Revenue High Court up held the view of the Tribunal. (AY. 2008-09)