https://www.taxtmi.com/caselaws?id=21441 Expenditure on issuing shares to comply with foreign exchange control requirements was treated as capital in nature because it altered the company's capital structure and produced a capital advantage, so it was not deductible as revenue expenditure. Under the mercantile system, disputed sales tax liability generally accrues in the year of the underlying transaction, but an additional liability raised by assessment may be deductible when quantified; the sales tax issue therefore required fresh factual enquiry by the Tribunal. Surtax liability for the previous year was held not allowable as a deduction in computing total income, in line with binding authority. en-us Thu, 18 Jul 1991 00:00:00 +0530 Tue, 24 Nov 2009 13:35:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21441 Expenditure on issuing shares to comply with foreign exchange control requirements was treated as capital in nature because it altered the company's capital structure and produced a capital advantage, so it was not deductible as revenue expenditure. Under the mercantile system, disputed sales tax liability generally accrues in the year of the underlying transaction, but an additional liability raised by assessment may be deductible when quantified; the sales tax issue therefore required fresh factual enquiry by the Tribunal. Surtax liability for the previous year was held not allowable as a deduction in computing total income, in line with binding authority. Case-Laws Income Tax Thu, 18 Jul 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21441