https://www.taxtmi.com/caselaws?id=300799 Compensation for termination of a joint venture with restrictive covenants was treated as capital in nature because it impaired the assessee's profit-making apparatus, not a normal trading advantage. Forfeited share application money retained its capital character and was not taxable as revenue receipt or under section 41(1) absent any prior deduction or trading liability write-back. Legal expenses to defend joint venture litigation were allowable as business expenditure on commercial expediency, while technical know-how fees for services rendered and paid outside India were not disallowed under section 40(a)(i). The note also addresses bad debt write-off, doubtful debts, prior period expenses, club contributions, and ad hoc gift disallowances. 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 Compensation for termination of a joint venture with restrictive covenants was treated as capital in nature because it impaired the assessee's profit-making apparatus, not a normal trading advantage. Forfeited share application money retained its capital character and was not taxable as revenue receipt or under section 41(1) absent any prior deduction or trading liability write-back. Legal expenses to defend joint venture litigation were allowable as business expenditure on commercial expediency, while technical know-how fees for services rendered and paid outside India were not disallowed under section 40(a)(i). The note also addresses bad debt write-off, doubtful debts, prior period expenses, club contributions, and ad hoc gift disallowances. Case-Laws Income Tax Tue, 21 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=300799