https://www.taxtmi.com/caselaws?id=38724 The court allowed the deduction of Rs. 6,525 as business expenditure related to litigation costs incurred in recovering taxes. However, the court disallowed the deduction of Rs. 32,477 claimed as traveling expenses for setting up new projects, ruling it as capital expenditure. The court emphasized that expenses for initiating or extending a business are considered capital expenditure. The decision favored the assessee on the first issue and the department on the second issue, with no costs awarded and counsel fees set at Rs. 200. en-us Thu, 22 Apr 1976 00:00:00 +0530 Thu, 08 Apr 2010 15:43:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38724 The court allowed the deduction of Rs. 6,525 as business expenditure related to litigation costs incurred in recovering taxes. However, the court disallowed the deduction of Rs. 32,477 claimed as traveling expenses for setting up new projects, ruling it as capital expenditure. The court emphasized that expenses for initiating or extending a business are considered capital expenditure. The decision favored the assessee on the first issue and the department on the second issue, with no costs awarded and counsel fees set at Rs. 200. Case-Laws Income Tax Thu, 22 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38724