https://www.taxtmi.com/caselaws?id=12455 Expenditure incurred in connection with setting up a new project that was ultimately abandoned remained capital in nature; since it was incurred for establishing a capital asset and could not be converted into revenue expenditure by claiming it in a later year, the deduction was disallowed and the issue was decided for the Revenue. Reimbursement of employees' medical expenses constituted "salary" for purposes of disallowance under ss. 40A(5) and 40(c) of the Income-tax Act, 1961, and was held against the assessee for the Revenue. Amounts received towards differential levy price of cane sugar, being subject to pending litigation and possible refund, were not trading receipts and were not taxable, decided for the assessee. On higher depreciation, remand for technical verification of corrosive-chemical use was upheld, decided for the assessee. en-us Thu, 08 Nov 2001 00:00:00 +0530 Tue, 23 Dec 2025 12:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12455 Expenditure incurred in connection with setting up a new project that was ultimately abandoned remained capital in nature; since it was incurred for establishing a capital asset and could not be converted into revenue expenditure by claiming it in a later year, the deduction was disallowed and the issue was decided for the Revenue. Reimbursement of employees' medical expenses constituted "salary" for purposes of disallowance under ss. 40A(5) and 40(c) of the Income-tax Act, 1961, and was held against the assessee for the Revenue. Amounts received towards differential levy price of cane sugar, being subject to pending litigation and possible refund, were not trading receipts and were not taxable, decided for the assessee. On higher depreciation, remand for technical verification of corrosive-chemical use was upheld, decided for the assessee. Case-Laws Income Tax Thu, 08 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12455