TaxTMI 
TaxTMI 
advances written off is an eligible expenditure as per IT Act? if it is eligible under which section? and give me the relevant case laws
advances written off
25 Oct 2010 
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Capital vs revenue classification: deductibility of written-off advances depends on whether the advance funded trading consumption or capital acquisition.
Tax deductibility of advances written off turns on their character: advances for materials consumed in trade or repairs are revenue in nature and deductible, whereas advances tied to acquisition or construction of fixed assets assume a capital character and are not deductible; the decisive test is the factual purpose and nexus of the advance to trading activity or capital formation. (AI Summary)
Tax deductibility of advances written off turns on their character: advances for materials consumed in trade or repairs are revenue in nature and deductible, whereas advances tied to acquisition or construction of fixed assets assume a capital character and are not deductible; the decisive test is the factual purpose and nexus of the advance to trading activity or capital formation. (AI Summary)