2008 (9) TMI 8

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.... expenditure of a capital nature or of a revenue nature. The assessee is engaged in the travel business and makes all kinds of arrangements for its clients such as booking of hotel rooms, providing taxi services, booking of air tickets and railway tickets etc. In its website, the assessee indicates the various destinations and places for which it can arrange travel, hotel booking etc. for its clients. The assessee's clients can use the assessee's website for the purposes of availing of the services provided by the assessee. 3. According to the Assessing Officer the expenditure of Rs 20,23,317/-made by the assessee in the year in question was of a capital nature inasmuch as it had acquired an asset which would provide the assessee with an....

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....he cases of Empire Jute Company Ltd v. CIT: 124 ITR 01 and Alembic Chemical Works Company Ltd v. CIT: 177 ITR 377. 5. In Empire Jute Company Ltd (supra), the Supreme Court observed that if the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more efficiently or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future. The Supreme Court observed that in such cases the test of enduring benefit is, therefore, not a certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular fa....