https://www.taxtmi.com/caselaws?id=20408 The court held that the payment to the Textile Commissioner was allowable as a business deduction under section 37(1) of the Income Tax Act. Expenditure for acquiring tenancy rights was classified as capital in nature, as it constituted a capital asset. Expenses incurred in issuing bonus shares were also deemed capital in nature, contributing to the permanent structure of the company. Additionally, the payment for bank guarantee commission was considered a capital expenditure, necessary for bringing capital assets into existence. The judgment disposed of the reference without costs, suggesting the Tribunal consider granting depreciation or development rebate if applicable. en-us Tue, 08 Jun 1993 00:00:00 +0530 Fri, 13 Nov 2009 17:14:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20408 The court held that the payment to the Textile Commissioner was allowable as a business deduction under section 37(1) of the Income Tax Act. Expenditure for acquiring tenancy rights was classified as capital in nature, as it constituted a capital asset. Expenses incurred in issuing bonus shares were also deemed capital in nature, contributing to the permanent structure of the company. Additionally, the payment for bank guarantee commission was considered a capital expenditure, necessary for bringing capital assets into existence. The judgment disposed of the reference without costs, suggesting the Tribunal consider granting depreciation or development rebate if applicable. Case-Laws Income Tax Tue, 08 Jun 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20408