Business expenditure

Revenue or capital expenditure — The expenditure was incurred by the assessee on ad films in respect of an ongoing business and there was no enduring benefit on the same. Hence, it was assessable as revenue expenditure, as held by DelHC in CIT v Bonanza Portfolio Ltd — In favour of: The assessee.

An expenditure incurred on advertisements and websites for sales promotion is revenue in nature.

Depreciation — Computer peripherals are entitled to depreciation at 60%.

Decided on: 10 August 2011.