https://www.taxtmi.com/caselaws?id=5669 SC upheld the HC and Tribunal, holding that the assessee, whose business was manufacture and sale of tea, was not engaged in the cotton manufacturing business but only operated a cotton mill under a leave and licence agreement. The advance of Rs. 20 lakhs given for modernisation of the mill constituted capital provided to the lessor, not business expenditure of the assessee. The transaction was neither a loan nor a moneylending activity. Consequently, the resultant loss was a capital loss, not allowable as a business deduction. The assessee's appeal was dismissed, with no order as to costs. en-us Wed, 13 May 1998 00:00:00 +0530 Wed, 17 Dec 2025 10:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5669 SC upheld the HC and Tribunal, holding that the assessee, whose business was manufacture and sale of tea, was not engaged in the cotton manufacturing business but only operated a cotton mill under a leave and licence agreement. The advance of Rs. 20 lakhs given for modernisation of the mill constituted capital provided to the lessor, not business expenditure of the assessee. The transaction was neither a loan nor a moneylending activity. Consequently, the resultant loss was a capital loss, not allowable as a business deduction. The assessee's appeal was dismissed, with no order as to costs. Case-Laws Income Tax Wed, 13 May 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5669