1972 (2) TMI 31

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..... of the Income-tax Act of 1961, at the instance of the assessee, is to answer the question : " Whether, on the facts and in the circumstances of the case, the expenditure was a capital expenditure or a revenue expenditure? " The expenditure referred to is a sum of Rs. 10,370 incurred in connection with one of the directors of the assessee-company, one G. D. Thirani, going on a tour to Japan with .....

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..... e tour of a director to Japan is not in connection with any of these businesses that the company is already carrying on and will not enter into the ascertainment of trading profits connected therewith but it is in connection with a new business that they are seeking to start with Japanese collaboration. It is not enough if the articles sought to be manufactured are similar to what are already bein .....

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..... e. Even intangible initial outlay for the initiation of a new line of business, when the business is started, would be of enduring benefit to the assessee. It is, therefore, in the nature of capital expenditure and not revenue expenditure. We, therefore, in the view that what they sought to start was a new line of business, are of the opinion that the expenditure should be treated as capital expen .....

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