https://www.taxtmi.com/caselaws?id=12147 Where an assessee advanced funds to an agriculturist to acquire agricultural land for establishing a factory, but the land was ultimately not acquired, the HC held that no capital asset came into existence and the payment could not be treated as capital expenditure giving rise to depreciation. Since the transaction failed and no enduring benefit was obtained, the advance written off and related litigation expenses were allowable as business loss under the Income-tax Act. The Tribunal's acceptance of the write-off as a deductible business loss was upheld, and the revenue's challenge was dismissed. en-us Mon, 15 Jul 2002 00:00:00 +0530 Wed, 24 Dec 2025 20:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12147 Where an assessee advanced funds to an agriculturist to acquire agricultural land for establishing a factory, but the land was ultimately not acquired, the HC held that no capital asset came into existence and the payment could not be treated as capital expenditure giving rise to depreciation. Since the transaction failed and no enduring benefit was obtained, the advance written off and related litigation expenses were allowable as business loss under the Income-tax Act. The Tribunal's acceptance of the write-off as a deductible business loss was upheld, and the revenue's challenge was dismissed. Case-Laws Income Tax Mon, 15 Jul 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12147