https://www.taxtmi.com/caselaws?id=20286 Expenditure incurred in connection with sales tax appeals relating to the sale of agricultural produce was held deductible in computing agricultural income because it was directly connected with the tax liability contemplated by the statutory deduction provision and was incidental to that computation. Expenditure for services connected with alteration of the memorandum of association was also held to be revenue expenditure because the proper test is whether the outlay facilitates the carrying on of the business as part of the profit-earning process, rather than creating a capital asset or permanent advantage. On that basis, both amounts were treated as allowable deductions in favour of the assessee. en-us Tue, 17 Aug 1993 00:00:00 +0530 Fri, 13 Nov 2009 10:31:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20286 Expenditure incurred in connection with sales tax appeals relating to the sale of agricultural produce was held deductible in computing agricultural income because it was directly connected with the tax liability contemplated by the statutory deduction provision and was incidental to that computation. Expenditure for services connected with alteration of the memorandum of association was also held to be revenue expenditure because the proper test is whether the outlay facilitates the carrying on of the business as part of the profit-earning process, rather than creating a capital asset or permanent advantage. On that basis, both amounts were treated as allowable deductions in favour of the assessee. Case-Laws Income Tax Tue, 17 Aug 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20286