https://www.taxtmi.com/caselaws?id=5018 Deductibility under section 10(1) of the Indian Income-tax Act, 1922 depends on whether the expenditure relates to a business carried on in the relevant previous year. If a business has already been discontinued, an outgoing attributable to that closed unit cannot be set off against the income of separate businesses unless the assessee proves that all ventures formed one integrated business. In assessing unity of business, the relevant factors include common control and management, interconnection, interlacing, interdependence, common staff, and whether one unit can be closed without affecting the others. On the facts described, the cinema theatres operated independently with separate books, so the closed theatre was not part of a composite undertaking and the deduction was not allowable. en-us Tue, 21 Mar 1967 00:00:00 +0530 Tue, 18 Nov 2008 16:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5018 Deductibility under section 10(1) of the Indian Income-tax Act, 1922 depends on whether the expenditure relates to a business carried on in the relevant previous year. If a business has already been discontinued, an outgoing attributable to that closed unit cannot be set off against the income of separate businesses unless the assessee proves that all ventures formed one integrated business. In assessing unity of business, the relevant factors include common control and management, interconnection, interlacing, interdependence, common staff, and whether one unit can be closed without affecting the others. On the facts described, the cinema theatres operated independently with separate books, so the closed theatre was not part of a composite undertaking and the deduction was not allowable. Case-Laws Income Tax Tue, 21 Mar 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5018