https://www.taxtmi.com/caselaws?id=8739 Commission paid to borrow shares for furnishing security to obtain stay of tax recovery was treated as non-deductible business expenditure, following the assessee's earlier reference and despite reliance on a later Supreme Court ruling. Legal expenses connected with income-tax matters were allowed as deductible business expenditure on the authority cited by the Court. The Appellate Assistant Commissioner could enhance the assessment by correcting carried-forward loss and depreciation because appellate power under section 31 extended to matters already on record and did not require a new source of income; this was not barred by rectification provisions. Payment to release an irrevocable letter of credit for acquiring plant was held to be capital expenditure, as it formed part of a capital acquisition transaction. en-us Tue, 24 Aug 1971 00:00:00 +0530 Wed, 03 Jun 2009 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8739 Commission paid to borrow shares for furnishing security to obtain stay of tax recovery was treated as non-deductible business expenditure, following the assessee's earlier reference and despite reliance on a later Supreme Court ruling. Legal expenses connected with income-tax matters were allowed as deductible business expenditure on the authority cited by the Court. The Appellate Assistant Commissioner could enhance the assessment by correcting carried-forward loss and depreciation because appellate power under section 31 extended to matters already on record and did not require a new source of income; this was not barred by rectification provisions. Payment to release an irrevocable letter of credit for acquiring plant was held to be capital expenditure, as it formed part of a capital acquisition transaction. Case-Laws Income Tax Tue, 24 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8739