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2015 (3) TMI 322 - HC - Income TaxLoss in non-performance of the contract and expenditure on increase in forward cover for foreign exchange of a new joint venture which did not materialise - revenue expenditure or capital expenditure - Tribunal considered the expenditure of revenue nature - Held that:- In the case on hand, a careful reading of the order of the Tribunal and the facts as narrated it is clear that there is absolutely no justification for the Department to hold that there was a new line of business on which there occurred a loss. The parameters enunciated in the decision in Suhrid Geigy Ltd. Case (1995 (12) TMI 25 - GUJARAT High Court) is squarely attracted to the facts of the present case, justifying the loss of the assessee as a business loss, as admittedly, the assessee is in the business of marketing bulk drugs, formulations, etc., and one of its ventures has ended in a loss and that loss is attributable to business and it cannot be deemed to be a new enterprise and a capital expenditure. - Decided in favour of the assessee/respondent.
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