https://www.taxtmi.com/caselaws?id=23215 HC held that advances made by the non-resident assessee-company to a landlord, pursuant to agreements for acquiring factory premises on lease for its existing manufacturing and service business, were made wholly for business purposes. Since acquisition of leasehold premises is ordinarily not in the capital field, the loss arising on non-recovery of such advances constituted a business loss, not a capital loss. Consequently, the amount written off was allowable as a deduction in computing taxable income. The question was answered in the affirmative, and the Tribunal's disallowance was reversed in favour of the assessee. en-us Wed, 14 Dec 1988 00:00:00 +0530 Wed, 03 Dec 2025 15:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23215 HC held that advances made by the non-resident assessee-company to a landlord, pursuant to agreements for acquiring factory premises on lease for its existing manufacturing and service business, were made wholly for business purposes. Since acquisition of leasehold premises is ordinarily not in the capital field, the loss arising on non-recovery of such advances constituted a business loss, not a capital loss. Consequently, the amount written off was allowable as a deduction in computing taxable income. The question was answered in the affirmative, and the Tribunal's disallowance was reversed in favour of the assessee. Case-Laws Income Tax Wed, 14 Dec 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23215