https://www.taxtmi.com/caselaws?id=300799 Termination compensation linked to restrictive covenants that impair the profit-making apparatus is capital in nature and not taxable as business income; share application money retains its capital character despite forfeiture and cannot be taxed under section 41(1) without a prior deduction or trading liability. Legal costs incurred to protect commercial interests are deductible, while offshore technical services rendered and paid outside India did not trigger withholding disallowance. Notional interest cannot be imputed without diverted borrowings or where receivables are doubtful. Club contributions were disallowed, certification costs were revenue expenditure, and written-off business-sale debt qualified as bad debt. Certain pre-operative, doubtful-debt and prior-period claims required verification. en-us Tue, 21 Jun 2016 00:00:00 +0530 Thu, 24 Feb 2022 22:18:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=300799 Termination compensation linked to restrictive covenants that impair the profit-making apparatus is capital in nature and not taxable as business income; share application money retains its capital character despite forfeiture and cannot be taxed under section 41(1) without a prior deduction or trading liability. Legal costs incurred to protect commercial interests are deductible, while offshore technical services rendered and paid outside India did not trigger withholding disallowance. Notional interest cannot be imputed without diverted borrowings or where receivables are doubtful. Club contributions were disallowed, certification costs were revenue expenditure, and written-off business-sale debt qualified as bad debt. Certain pre-operative, doubtful-debt and prior-period claims required verification. Case-Laws Income Tax Tue, 21 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=300799