1962 (5) TMI 3 - SC - Income Tax

Whether there are materials for the Tribunal to hold that the sum of ₹ 2,87,422 aforesaid represents a loss of capital ?

Held that:- There was hardly any element of investment which contemplates more than payment of advance price. The resulting loss to the assessee company was just as much a loss on the revenue side as would have been, if it had paid for the ready crop which was not delivered. In our judgment, the decision of the High Court that the expenditure was not in the nature of a capital expenditure, and was deductible as a revenue expenditure is right. The appeal fails and is dismissed