Calcutta High Court
Rajendra Kumar Bachhawat vs Commissioner Of Income-Tax on 14 August, 2002
Equivalent citations: (2005)197CTR(CAL)489, [2005]276ITR567(CAL)
Author: Indira Banerjee
Bench: Indira Banerjee
JUDGMENT
1. The assessee paid a sum of Rs. 25 lakhs for development purposes for the purpose of becoming a member of the Calcutta Stock Exchange. In the assessment years in question, viz., 1992-93, 1993-94, the assessee made two types of claims in regard to the said sum.
2. First, the assessee's contention was that the amount is by way of revenue expenditure and is not by way of capital expenditure.
3. Secondly, the assessee submitted that it was entitled to dissect the revenue expenditure of Rs. 25 lakhs, into 10 equal parts of Rs. 2,50,000 each, and claim deduction thereof in 10 successive assessment years, of which the two assessment years in question were the first two.
4. We are of the opinion that this petition of appeal is quite hopeless. No doubt a very enduring benefit was accruing to the assessee on payment of the development charges.
5. That would render the expenditure as a capital one. Moreover, we are quite unaware of any authority given in the Income-tax Act, for carrying forward revenue expenditure, after dividing it, as per the assessee's own wish, into subsequent assessment years.
6. In this view of the matter no point of law worth the name arises out of the Tribunal's order dated September 21, 2001. The petition of appeal is dismissed.