TMI Blog2002 (7) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was written off on account of advance made to the agriculturist for purchase of agricultural land. The intention of the assessee, of course, was to acquire the land to set up a boiler factory, but ultimately that did not materialise. The agriculturist refused to refund the amount. The assessee filed a civil suit in the court, where the assessee lost its claim. Then the assessee had written off tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not the nature of the item manufactured but the test for the identity of the business is that there should be a single trading and profit and loss account and the transaction as well as the business should have been done by a common organisation. In these circumstances, the assessee would be entitled to the unabsorbed loss in the shape of shares against the income. This was so held by the Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Supreme Court in the two authorities cited aforesaid and since no benefit of enduring nature resulted to the assessee, the expenditure in question cannot be treated to be of capital nature." 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, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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