https://www.taxtmi.com/caselaws?id=8564 Property tax on cinema houses was held not deductible in computing business income because the levy attached to ownership of the immovable property, not to the carrying on of the film exhibition business. The governing test was whether the outgoing was laid out wholly and exclusively for business and had a direct and intimate connection with trading operations; a deduction is available only when the expense is incurred in the assessee's capacity as trader, not merely as owner of business assets. On that basis, the tax was treated as attributable to ownership rather than business expenditure, and the deduction was denied. en-us Thu, 26 Aug 1971 00:00:00 +0530 Thu, 30 Apr 2009 16:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8564 Property tax on cinema houses was held not deductible in computing business income because the levy attached to ownership of the immovable property, not to the carrying on of the film exhibition business. The governing test was whether the outgoing was laid out wholly and exclusively for business and had a direct and intimate connection with trading operations; a deduction is available only when the expense is incurred in the assessee's capacity as trader, not merely as owner of business assets. On that basis, the tax was treated as attributable to ownership rather than business expenditure, and the deduction was denied. Case-Laws Income Tax Thu, 26 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8564