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2002 (7) TMI 44 - HC - Income TaxBusiness Loss - Breach Of Agreement - "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in allowing the assessee's claim for writing off of the sum of Rs. 52,489 and litigation expenses at Rs. 12,000?" - The admitted facts are that the advance was paid for acquiring the agricultural land to set up a factory, but when the agricultural land was not acquired, no capital asset came into existence, therefore, there is no question of allowing depreciation on such asset. If any asset is acquired and if it is a benefit of enduring nature, then, of course, the assessee cannot get deduction of the amount for acquisition of land as revenue expenditure. When land was not acquired, no capital asset has been acquired and therefore, the payment of Rs. 52,489 is to be allowed as a business loss. - We agree with the view taken by the Tribunal. No interference is called for.
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