Business expenditure

The expenditure incurred in the repair of the transformer is in nature of revenue expenditure, as held by MumHC in CIT v Sunflag Iron & Steel Co Ltd — In favour of: The assessee.

Deduction under s 80HHC or book profits — For determining the “book profits” in terms of s 115JB, the net profits, as shown in the profit and loss account, have to be reduced by the amount of profits eligible for deduction under s 80HHC.

Decided on: 21 October 2011.