Dismissing the Department\u2019s appeal and allowing the assessee\u2019s, (i) that the Assessing Officer had erred in taking the property as ownership property of the assessee. The Commissioner (Appeals) had given a finding of fact that the assessee entered into a separate infrastructure development agreement with S Ltd. to maintain common facilities and amenities outside the owned property of the assessee. Where the advantage consists merely in facilitating the assessee’s business operation or enabling management to conduct business in a more efficient manner, leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite time. Accordingly, there was no infirmity in the order of the Commissioner (Appeals).\u00a0 Foreign currency fluctuation is allowable as revenue expenditure . A corporate entity and Ad hoc disallowance of\u00a0 expenditure is not permissible without pointing out specific defect-Charges\u00a0 towards drafting agreements, resolutions and rendering legal consultancy services relating to plant acquisition is\u00a0\u00a0 Professional services hence\u00a0 allowable as revenue expenditure \u00a0\u00a0(AY.2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Capital or revenue-Infrastructure development expenses-Agreement to maintain common facilities and amenities outside property of assessee-Allowable as revenue expenditure even though advantage may endure for indefinite time-Foreign currency fluctuation-No disallowance can be made-Miscellaneous expenses-A corporate entity and Ad hoc disallowance of expenditure is not permissible without pointing out specific defect-Legal expenses for acquisition of plant-Charges towards drafting agreements, resolutions and rendering legal consultancy services relating to plant acquisition-Professional services-Allowable as revenue expenditure. [S. 43A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44754","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bDQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44754"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44754\/revisions"}],"predecessor-version":[{"id":44755,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44754\/revisions\/44755"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}