Stamp duty payment allowed as revenue expenditure

The Gujarat High Court held that the amount of stamp duty is allowed as revenue expenditure because the stamp duty paid by the taxpayer during the year was a compulsory statutory levy; would not restrict the profits of the future years; and was an ordinarily revenue expenditure incurred wholly and exclusively for the purpose of the taxpayer’s business. Accordingly, the stamp duty must be allowed in its entirety in the year in which it is incurred and was not to be spread over a number of years. The case is: Prithvi Associates. Read a June 2016 report [PDF 328 KB]