https://www.taxtmi.com/caselaws?id=17938 Building tax paid under the Kerala Building Tax Act on a hotel building was held to be capital expenditure, as the levy was non-recurring and attached to the building as part of the capital asset. It was therefore not an outgoing laid out wholly and exclusively for business purposes and was not deductible as revenue expenditure under section 37(1) of the Income-tax Act. The claim also failed under section 30(b) because the tax was not shown to have been paid for the purposes of the business or profession. The deduction was disallowed and the issue was answered in favour of the Revenue. en-us Thu, 04 Jul 1996 00:00:00 +0530 Fri, 25 Sep 2009 16:59:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17938 Building tax paid under the Kerala Building Tax Act on a hotel building was held to be capital expenditure, as the levy was non-recurring and attached to the building as part of the capital asset. It was therefore not an outgoing laid out wholly and exclusively for business purposes and was not deductible as revenue expenditure under section 37(1) of the Income-tax Act. The claim also failed under section 30(b) because the tax was not shown to have been paid for the purposes of the business or profession. The deduction was disallowed and the issue was answered in favour of the Revenue. Case-Laws Income Tax Thu, 04 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17938