TaxTMI 
TaxTMI 
Amount paid for rehabilitation of squatters in village - Whether capital expenditure or revenue expenditure?
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....mount paid for rehabilitation of squatters in village - Whether capital expenditure or revenue expenditure? <br>News and Press Release<br>Dated:- 7-10-2008<br><BR>In a recent case, honorable high Cour....
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....t of Delhi (reported in 2008 -TMI - 30813 - DELHI HIGH COURT) has decided the issue of nature of certain expenditure incurred relating to land. In this judgment, HC held that the expenditure incurred....
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.... for removal of the villagers and resettling them at another site was a capital expenditure. The contention of the assessee that expenditure should be treated as revenue expenditure was rejected by m....
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....aking reference to various decisions of High Courts and Supreme Court in which it was held that; - where money is paid to perfect a title or as consideration for getting rid of a defect in the title ....
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....or a threat of litigation the payment would be a capital payment and not a revenue payment. - where expenditure was incurred by the assessee for shifting the factory from one place to another to impr....
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....ove the business, the same was capital expenditure in nature. - to perfect the interest of the assessee in the land or get rid of the threat of litigation which might have delayed the handing over of....
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.... vacant possession of the plot to the assessee and the establishment of the proposed factory by the assessee thereon - such expenditure cannot be treated as revenue expenditure (For full text of judg....
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....ment - visit 2008 -TMI - 30813 - DELHI HIGH COURT)<BR> News - Press release - PIB....