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Whether expenditure on upgrading computers are allowable as revenue expenditure?

CIT v. Southern Roadways Ltd. (2007) 288 ITR 15 (Mad.)Relevant section: 37The High Court held that the upgradation of computers by changing certain parts thereby enhancing the configuration of the computers for improving their efficiency, but without making any structural alterations is not change of an enduring nature. Therefore, the expenditure incurred by the assessee had to be treated as revenue expenditure.

Whether excess charges paid by the assessee for using excess load of electricity was allowable business expenditure?

CIT, Patiala v. Industrial Cables (India) Ltd. (2007) 162 Taxman 423 (Punj. & Har.)Relevant section: 37(1)The Tribunal recorded a finding that the amount paid by the assessee was a kind ofsurcharge levied for drawal of excess load as per the PSEB Rules and not penalty. Theassessee had used the excess load in the course of business, which certainly hasrelation with the business. Hence, excess charges paid by the assessee for using excessload for business purpose, .....

Vodafone International vs. UOI (Bombay High Court)

Vodafone has been ordered to pay up $2 billion in capital gains tax by an Indian court. Where the assessee, a Dutch company, purchased shares of a Cayman Company (which in turn held shares of an Indian company ‘Hutch Essar’) from another foreign company (HTIL) and the AO issued a notice asking the assessee why it should not be treated as an assessee in default for failure to deduct tax at source and the assessee .....