https://www.taxtmi.com/caselaws?id=187771 Expenditure incurred to prospect and maintain an abandoned mica business after a cyclone remained deductible where the company was still using its existing staff to assess whether production could be resumed. Temporary stoppage of operations did not, by itself, break business continuity or convert the outlay into capital expenditure. The decisive factor was that the spending was made in the course of carrying on efforts to preserve or revive the same business. On those facts, the expenditure was treated as business expenditure and not as a capital loss, with the issue resolved in favour of the assessee. en-us Tue, 17 Sep 1935 00:00:00 +0530 Sat, 05 Nov 2016 17:07:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187771 Expenditure incurred to prospect and maintain an abandoned mica business after a cyclone remained deductible where the company was still using its existing staff to assess whether production could be resumed. Temporary stoppage of operations did not, by itself, break business continuity or convert the outlay into capital expenditure. The decisive factor was that the spending was made in the course of carrying on efforts to preserve or revive the same business. On those facts, the expenditure was treated as business expenditure and not as a capital loss, with the issue resolved in favour of the assessee. Case-Laws Income Tax Tue, 17 Sep 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187771