https://www.taxtmi.com/caselaws?id=758109 The ITAT Dehradun held that silt filling costs constitute revenue expenditure rather than capital expenditure. The assessee, a mining company, utilized existing silt to fill pits created during stone extraction operations. The AO had arbitrarily valued the silt at market rate and treated it as capital expenditure. The tribunal determined that pit filling is a recurring business activity integral to mining operations, using existing materials without purchasing new ones. This expenditure does not enhance earning capacity or provide capital benefits. The valuation method aligned with accepted trade practices and Accounting Standard-2. The tribunal allowed the assessee's appeal, ruling the expenditure as revenue in nature. en-us Thu, 29 Aug 2024 00:00:00 +0530 Sat, 07 Sep 2024 08:18:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758109 The ITAT Dehradun held that silt filling costs constitute revenue expenditure rather than capital expenditure. The assessee, a mining company, utilized existing silt to fill pits created during stone extraction operations. The AO had arbitrarily valued the silt at market rate and treated it as capital expenditure. The tribunal determined that pit filling is a recurring business activity integral to mining operations, using existing materials without purchasing new ones. This expenditure does not enhance earning capacity or provide capital benefits. The valuation method aligned with accepted trade practices and Accounting Standard-2. The tribunal allowed the assessee's appeal, ruling the expenditure as revenue in nature. Case-Laws Income Tax Thu, 29 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758109