Capital Expenditure - Law Dictionary Search Results
Home Dictionary Name: capital expenditureCapital expenditure and revenue expenditure
Capital expenditure and revenue expenditure, in cases where the expenditure is made for the initial outlay or for extension of a business or a substantial replacement of the equipment, there is no doubt that it is 'capital expenditure'. If on the other hand it is made not for the purpose of bringing into existence any such asset or advantage but for running the business or working it with a view to produce the profits it is a 'revenue expenditure', Assam Bengal Cement Co. v. C.I.T, AIR 1955 SC 89 (96). [Income-tax Act, 1922, s. 10(2)(xv)]...
capital expenditure
capital expenditure : an amount paid out that creates a long-term benefit (as one lasting beyond the taxable year) ;esp : costs that are incurred in the acquisition or improvement of property (as capital assets) or that are otherwise chargeable to a capital account NOTE: Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis. ...
capitalize
capitalize -ized -iz·ing 1 a : to convert into capital [ the company's earnings] b : to treat as a capital expenditure rather than an ordinary and necessary expense [the cost of the merger must be capitalized] 2 a : to compute the present value of (an income extended over a period of time) compare amortize b : to convert (a periodic payment) into an equivalent capital sum [capitalized annuities] 3 : to supply capital for [had capitalized the business with her own savings] ...
expenditure
expenditure 1 : the act or process of paying out 2 : something paid out see also capital expenditure ...
expense
expense : financial burden or outlay ;specif : an item of business outlay chargeable against revenue for a specific period busi·ness expense : an expense made in furtherance of one's business esp. as part of the cost of operating a business in the taxable year in which the expense is incurred compare capital expense and personal expense in this entry NOTE: Business expenses are generally tax deductible in the year the expense is incurred. capital expense : an expense made in a business that will provide a long-term benefit : capital expenditure NOTE: Capital expenses are not tax deductible as business expenses but may be used for depreciation or amortization. mov·ing expense : an expense incurred in changing one's residence that is tax deductible if incurred for business reasons (as when one's job requires relocation) or·di·nary and nec·es·sary expense : an expense that is normal or customary and helpful and appropriate for the operation of a ...
Floating capital
Floating capital. Capital available for the purpose of meeting current expenditure....
Trade Facilities Acts, 1921 to 1926 (English)
Trade Facilities Acts, 1921 to 1926 (English), By these Acts the Treasury was authorized to guarantee (after consultation with advisory committees before 31st March, 1927), up to a maximum of 75 million pounds, the capital or interest of any capital expenditure loan, raised by any Government, public authority or company, for purposes calculated to promote employment in the United Kingdom....
Entertainment expenditure
Entertainment expenditure, the expression 'enter-tainment expenditure' is of wide import. However, in the context of disallowance of 'entertainment expenditure' as a business expenditure by virtue of sub-s. (2A) of s. 37, the word 'entertainment' must be construed strictly and not expansively. Ordinarily, 'entertainment' connotes something which may be beneficial for the mental or physical well being but is not essential or indispensable for human existence. A bare necessity, like ordinary meal, is essential or indispensable and, therefore, is not 'entertainment' the expenditure incurred in extending customary hospitality by offering ordinary meals as a bare necessity, is not 'entertainment expenditure', C.I.T. v. Patel Bros., (1995) 4 SCC 485: AIR 1995 SC 1829 (1833). [Income-tax Act, (43 of 1961), s. 37(2A)]...
Expenditure
Expenditure, the term 'expenditure' is not necess-arily confined to the money which has been actually paid out. It covers a liability which has accrued or which has been incurred although it may have to be discharged at a future date. However, a contingent liability which may have to be discharged in future cannot be considered as expenditure, Madras Industrial Investment Corpn. Ltd. v. CIT, (1997) 4 SCC 666: AIR 1997 SC 2063.'Expenditure' is equal to 'expense' and 'expense is money laid out by calculation and intention though many uses of the word this element may not be present, as when we speak of a joke at another's expense. But the idea of 'spending in the sense of' paying out or away money is the primary meaning and it is with that meaning that we are concerned. 'Expenditure is thus what is 'paid out or away' and is something which is gone irretrievably, Indian Molasser Co. v. C.I.T., AIR 1959 SC 1049 (1058). [Income-tax Act, 1922, s. 10(2)(xv)]...
Disputed chargeable expenditure
Disputed chargeable expenditure, 'disputed chargeable expenditure', in relation to an assess-ment year, means the whole or so much of the chargeable expenditure as is relatable to the disputed tax. [Kar Vivad Samadhan Scheme, 1998, s. 87(c)]...
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