https://www.taxtmi.com/caselaws?id=363865 The appellate tribunal upheld the Commissioner of Income Tax's order under Section 263 of the Income Tax Act, affirming the treatment of electricity charges as capital expenditure rather than revenue. The High Court supported this decision, emphasizing that the charges were a hidden cost necessary for future utilization, constituting capital expenditure. Despite the possibility of claiming depreciation on capital expenditure, the Court found the initial assessment as revenue expenditure to be erroneous and prejudicial to the Revenue. Consequently, the Court ruled in favor of the Revenue, rejecting the appeal and directing each party to bear their respective costs. en-us Tue, 10 Jul 2018 00:00:00 +0530 Thu, 19 Jul 2018 06:09:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=363865 The appellate tribunal upheld the Commissioner of Income Tax's order under Section 263 of the Income Tax Act, affirming the treatment of electricity charges as capital expenditure rather than revenue. The High Court supported this decision, emphasizing that the charges were a hidden cost necessary for future utilization, constituting capital expenditure. Despite the possibility of claiming depreciation on capital expenditure, the Court found the initial assessment as revenue expenditure to be erroneous and prejudicial to the Revenue. Consequently, the Court ruled in favor of the Revenue, rejecting the appeal and directing each party to bear their respective costs. Case-Laws Income Tax Tue, 10 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=363865