Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessment years 1992-93 and 1993-94 - Assessee paid certain sum for development purposes for becoming a member of Calcutta Stock Exchange and claimed said payment as revenue expenditure - Whether since enduring benefit was accruing to assessee on payment of development charges, expenditure in question was capital one - Held, yes EDITOR'S NOTE In absence of any authority given in the Act, for carrying forward revenue expenditure, after dividing it, as per the assessee's own wish, into subse- quent assessment years, assessee was not entitled to dissect the revenue expenditure of certain sum into 10 equal parts and claim deduction thereof in 10 successive assessment years. JUDGMENT 1. The assessee paid a sum of Rs. 25 lakhs for development purposes for the purpose of becoming a member of the Calcutta Stock Exchange. In the assessment years in question, viz., 1992-93, 1993-94, the assessee made two types of claims in regard to the said sum. 2. First, the assessee's contention was that the amount is by way of revenue…

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