https://www.taxtmi.com/caselaws?id=188552 Expenditure incurred to secure a proposed company's managing agency was treated as capital in nature and not as an allowable deduction, especially where no contract or ordinary-course reimbursement was proved and the company was never formed. Spending on leased guest house premises was not allowed as repairs because the material did not show current repairs, but rather additions or alterations amounting to capital improvement, and the evidentiary basis was insufficient. Amounts spent for promotion of another company were also not deductible, as irrecoverability for bad-debt treatment was not proved and the claim could not be brought within business expenditure. en-us Thu, 20 Apr 1961 00:00:00 +0530 Mon, 05 Dec 2016 16:52:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188552 Expenditure incurred to secure a proposed company's managing agency was treated as capital in nature and not as an allowable deduction, especially where no contract or ordinary-course reimbursement was proved and the company was never formed. Spending on leased guest house premises was not allowed as repairs because the material did not show current repairs, but rather additions or alterations amounting to capital improvement, and the evidentiary basis was insufficient. Amounts spent for promotion of another company were also not deductible, as irrecoverability for bad-debt treatment was not proved and the claim could not be brought within business expenditure. Case-Laws Income Tax Thu, 20 Apr 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188552