https://www.taxtmi.com/caselaws?id=24418 Municipal tax paid on a purchased plot held by a running business for expansion of its premises was treated as a deductible business expenditure under section 37 of the Income-tax Act, 1961. The expenditure was not regarded as part of the cost of acquiring a new capital asset; instead, it was considered incidental to retaining property used for business expansion. The Court distinguished outlays incurred to set up a business for the first time and held that tax on land owned by an existing concern can be allowable even before the proposed building is constructed or the asset is brought into use. en-us Wed, 01 Feb 1989 00:00:00 +0530 Tue, 19 Jan 2010 18:36:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24418 Municipal tax paid on a purchased plot held by a running business for expansion of its premises was treated as a deductible business expenditure under section 37 of the Income-tax Act, 1961. The expenditure was not regarded as part of the cost of acquiring a new capital asset; instead, it was considered incidental to retaining property used for business expansion. The Court distinguished outlays incurred to set up a business for the first time and held that tax on land owned by an existing concern can be allowable even before the proposed building is constructed or the asset is brought into use. Case-Laws Income Tax Wed, 01 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24418