https://www.taxtmi.com/caselaws?id=186459 The court held that the payment made by the assessee for the excavation of lime shells was a capital expenditure and not deductible in computing business profits. The court emphasized that the payment was for acquiring the business itself, constituting a capital outlay. Referring to precedents, the court concluded that payments to acquire assets or contracts necessary to start a business are capital expenditures, not deductible expenses. The court answered the question in the affirmative, affirming the decision that the payment was not deductible, and awarded costs to the Commissioner of Income Tax. en-us Tue, 08 May 1934 00:00:00 +0530 Mon, 19 Sep 2016 17:04:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186459 The court held that the payment made by the assessee for the excavation of lime shells was a capital expenditure and not deductible in computing business profits. The court emphasized that the payment was for acquiring the business itself, constituting a capital outlay. Referring to precedents, the court concluded that payments to acquire assets or contracts necessary to start a business are capital expenditures, not deductible expenses. The court answered the question in the affirmative, affirming the decision that the payment was not deductible, and awarded costs to the Commissioner of Income Tax. Case-Laws Income Tax Tue, 08 May 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186459