https://www.taxtmi.com/caselaws?id=6342 Wealth-tax paid on commercial assets used wholly and exclusively for business is deductible where the payment is, in substance, incidental to carrying on the trade. The controlling test is the causal connection between the tax payment and the business use of the assets, rather than the mere label of ownership or the capacity in which the assessee is taxed. The earlier view that deductibility depended on the capacity in which the tax was paid was modified. On that basis, wealth-tax attributable to business assets used for the trade fell within the business deduction provision and was allowed in favour of the assessee. en-us Wed, 29 Mar 1972 00:00:00 +0530 Thu, 22 May 2014 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6342 Wealth-tax paid on commercial assets used wholly and exclusively for business is deductible where the payment is, in substance, incidental to carrying on the trade. The controlling test is the causal connection between the tax payment and the business use of the assets, rather than the mere label of ownership or the capacity in which the assessee is taxed. The earlier view that deductibility depended on the capacity in which the tax was paid was modified. On that basis, wealth-tax attributable to business assets used for the trade fell within the business deduction provision and was allowed in favour of the assessee. Case-Laws Wealth-tax Wed, 29 Mar 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6342