" The aim and object of the expenditure would determine the character of the
expenditure whether it is a capital expenditure or a revenue
expenditure "
If the expenditure is made for acquiring or bringing into existence an asset or advantage for the enduring benefit of the business it is properly attributable to capital and is of the nature of capital expenditure If on the other hand it is made not for the purpose of bringing into existence any such asset or advantage but for running the business or working it with a view to produce the profits it is a revenue expenditure. If any such asset or advantage for the enduring benefit of the business s is thus acquired or brought into existence it would be immaterial whether the source of the payment was the capital or the income of the concern or whether the payment was made once and for all or was made periodically. The aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a revenue expenditure.
Read more: Expenditure incurred for running the business or working it, with a view to produce profits is in the nature of revenue expenditure http://taxguru.in/income-tax-case-laws/expenditure-incurred-running-business-working-view-produce-profits-nature-revenue-expenditure.html#ixzz1iTMukDqz
If the expenditure is made for acquiring or bringing into existence an asset or advantage for the enduring benefit of the business it is properly attributable to capital and is of the nature of capital expenditure If on the other hand it is made not for the purpose of bringing into existence any such asset or advantage but for running the business or working it with a view to produce the profits it is a revenue expenditure. If any such asset or advantage for the enduring benefit of the business s is thus acquired or brought into existence it would be immaterial whether the source of the payment was the capital or the income of the concern or whether the payment was made once and for all or was made periodically. The aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a revenue expenditure.
Read more: Expenditure incurred for running the business or working it, with a view to produce profits is in the nature of revenue expenditure http://taxguru.in/income-tax-case-laws/expenditure-incurred-running-business-working-view-produce-profits-nature-revenue-expenditure.html#ixzz1iTMukDqz
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