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Contributions to an electricity board for augmenting a...
Electricity network contributions remain revenue expenditure where ownership and maintenance stay with the electricity board, supporting business profitability.
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Contributions to an electricity board for augmenting a transmission network may constitute revenue expenditure under Section 37(1) where the board retains ownership, maintenance responsibility and the right to use the service line for other consumers. No tangible asset, ownership right or enduring capital asset arises for the contributor in those circumstances. The expenditure is incurred to improve the profitability of the existing business apparatus and does not render an assessment order erroneous or prejudicial to revenue merely because it was allowed as revenue expenditure.
Contributions to an electricity board for augmenting a transmission network may constitute revenue expenditure under Section 37(1) where the board retains ownership, maintenance responsibility and the right to use the service line for other consumers. No tangible asset, ownership right or enduring capital asset arises for the contributor in those circumstances. The expenditure is incurred to improve the profitability of the existing business apparatus and does not render an assessment order erroneous or prejudicial to revenue merely because it was allowed as revenue expenditure.
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