Ordinary dunnage is revenue expenditure: ITAT deletes ₹111 crore addition for CWC

The ITAT held that expenditure on ordinary dunnage (materials used for packing and safeguarding goods) qualifies as revenue expenditure and not capital in nature. The Tribunal followed its earlier rulings and deleted an addition of ₹111 crore made against the Central Warehousing Corporation. It emphasized that recurring operational expenses essential to business functioning cannot be capitalized. The judgment reinforces clarity on classification of business expenditure and prevents arbitrary disallowances under income tax assessments.