Tax Appeal Outcome: Partial win for Department as ITAT allows Rs. 10,000 as revenue expenditure.

The Department's appeal against the AAC's order modifying the assessment of the assessee for the assessment year 1975-76 was partially allowed. The ITAT Madras determined that Rs. 10,000 of the expenditure was allowable as revenue expenditure, while the remaining Rs. 28,509 was considered capital expenditure eligible for depreciation.

---

---

The Department appealed against the AAC's order modifying the assessment of the assessee for the assessment year 1975-76. The dispute was over whether the expenditure of Rs. 38,509 incurred for show-cases and decorations was revenue or capital in nature. The ITAT Madras held that Rs. 10,000 was allowable as revenue expenditure, while the remaining Rs. 28,509 was capital expenditure eligible for depreciation. The appeal was allowed in part. (Case: Appellate Tribunal ITAT MADRAS-D, Citation: 1978 (3) TMI 138 - ITAT MADRAS-D)

---