https://www.taxtmi.com/caselaws?id=25310 The High Court of Madhya Pradesh ruled that the expenditure incurred by the managing director and chief executive of a company on a trip to Mauritius for initiating a new business venture was capital expenditure and not allowable as business expenditure for the assessment year 1979-80. The court emphasized that consultancy was not part of the company's business at the relevant time and highlighted that clauses IA and ID of the memorandum of association, relied upon by the Tribunal, were inserted after the assessment year in question. Consequently, the court sided with the Revenue, holding that the expenditure was not allowable as business expenditure. en-us Thu, 16 Jul 1987 00:00:00 +0530 Wed, 27 Jan 2010 18:02:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25310 The High Court of Madhya Pradesh ruled that the expenditure incurred by the managing director and chief executive of a company on a trip to Mauritius for initiating a new business venture was capital expenditure and not allowable as business expenditure for the assessment year 1979-80. The court emphasized that consultancy was not part of the company's business at the relevant time and highlighted that clauses IA and ID of the memorandum of association, relied upon by the Tribunal, were inserted after the assessment year in question. Consequently, the court sided with the Revenue, holding that the expenditure was not allowable as business expenditure. Case-Laws Income Tax Thu, 16 Jul 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25310