TMI Blog1989 (2) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... ing year relevant to the assessment year 1977-78, it purchased a plot of land to raise a building for business purposes. In the previous year, it had to pay Rs. 1,890 as municipal taxes on the purchased plot and claimed deduction under section 37 of the Incometax Act, 1961 (for short "the Act"), during the assessment for the assessment year 1977-78. The Income-tax Officer declined the deduction on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat municipal tax of Rs. 1,890 paid in respect of Dev Nagar Plot is business expenditure ?" There is no dispute that if a new business is set up for the first time, the expenditure in doing so would be of capital nature and deduction would not be permissible under section 37 of the Act, but if by a running concern the property is purchased in the shape of a plot for setting up an additional busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|