https://www.taxtmi.com/caselaws?id=28725 The High Court of Allahabad determined that the expenditure of Rs. 13,254 on an unsuccessful tube-well by a cooperative society engaged in the sugar business was a capital expenditure. Despite the society's argument that the expense was incurred to facilitate business operations, the court held that it was capital in nature as it aimed to acquire a capital asset. Citing relevant legal precedents, the court emphasized that expenses for acquiring capital assets, regardless of success, are considered capital expenditures. Each party was directed to bear their own costs in the case. en-us Thu, 27 May 1982 00:00:00 +0530 Thu, 25 Feb 2010 11:43:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28725 The High Court of Allahabad determined that the expenditure of Rs. 13,254 on an unsuccessful tube-well by a cooperative society engaged in the sugar business was a capital expenditure. Despite the society's argument that the expense was incurred to facilitate business operations, the court held that it was capital in nature as it aimed to acquire a capital asset. Citing relevant legal precedents, the court emphasized that expenses for acquiring capital assets, regardless of success, are considered capital expenditures. Each party was directed to bear their own costs in the case. Case-Laws Income Tax Thu, 27 May 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28725