Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2719 - AT - Income TaxDisallowance being deposits written off - busniss loss or capital l0ss - Held that:- Hon’ble Supreme Court in the case of CIT Vs Mysore Sugar Co. Ltd [1962 (5) TMI 3 - SUPREME Court] for what was the money laid out? Was it to “ acquire an asset of an enduring nature for the benefit of the business, or was it an outgoing in the doing of the business? If money be lost in the first circumstance, it is a loss of capital, but if lost in the second circumstance, it is a revenue loss. In the first, it bears the character of an investment, but in the second, to use a commonly understood phrase, it bears the character of current expenses.” Also in the case of I.B. M World Trade Corpn.(1988 (12) TMI 23 - BOMBAY High Court) that the moneys advanced by the assessee in pursuance of these agreements to the landlord for the purposes of and in connection with the acquisition of the premises on lease were for the purpose of business. Naturally, therefore, when such advances are lost to the assessee, the loss would be a business loss and not a capital loss - Decided against revenue
|