https://www.taxtmi.com/caselaws?id=325265 A write-back of excess leave encashment provision was treated as non-taxable because the corresponding deduction had never been allowed earlier, so section 41(1) did not apply. Foreign exchange fluctuation loss on working capital borrowings was regarded as a revenue loss allowable on accrual basis. Deductions for obsolete stock written off, Chennai plant shifting expenses, and upfront bank fees were not denied merely because the entries were not routed through the profit and loss account; the decisive test was the commercial nature of the expenditure and the factual basis for write-off. Transfer of long-held factory land used as a fixed asset was characterised as realisation of capital asset, not an adventure in the nature of trade, so capital gains treatment applied. en-us Wed, 03 Feb 2016 00:00:00 +0530 Fri, 05 Aug 2022 17:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325265 A write-back of excess leave encashment provision was treated as non-taxable because the corresponding deduction had never been allowed earlier, so section 41(1) did not apply. Foreign exchange fluctuation loss on working capital borrowings was regarded as a revenue loss allowable on accrual basis. Deductions for obsolete stock written off, Chennai plant shifting expenses, and upfront bank fees were not denied merely because the entries were not routed through the profit and loss account; the decisive test was the commercial nature of the expenditure and the factual basis for write-off. Transfer of long-held factory land used as a fixed asset was characterised as realisation of capital asset, not an adventure in the nature of trade, so capital gains treatment applied. Case-Laws Income Tax Wed, 03 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325265