https://www.taxtmi.com/caselaws?id=285152 The Tribunal allowed the appeal, overturning the lower authorities' decision to disallow the earnest money deposit as a capital expenditure. It held that the forfeiture of earnest money was a business loss, not a penalty, as it was in accordance with the agreement terms and not due to any legal violation. Since the earnest money was for business purposes and not related to capital assets, the loss was considered allowable. en-us Mon, 20 Dec 2010 00:00:00 +0530 Mon, 30 Dec 2019 17:52:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285152 The Tribunal allowed the appeal, overturning the lower authorities' decision to disallow the earnest money deposit as a capital expenditure. It held that the forfeiture of earnest money was a business loss, not a penalty, as it was in accordance with the agreement terms and not due to any legal violation. Since the earnest money was for business purposes and not related to capital assets, the loss was considered allowable. Case-Laws Income Tax Mon, 20 Dec 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285152