https://www.taxtmi.com/caselaws?id=55474 The Tribunal held that the deduction claimed by the assessee for income-tax liability of a dissolved partnership firm cannot be allowed in computing taxable income as it constitutes capital expenditure. The Tribunal distinguished between bad debts and income-tax liability, concluding that the latter falls under non-deductible amounts for business income computation. The decision overturned the CIT(A)'s ruling, directing the disallowance of the claimed amount in the taxable income calculation. As a result, the Revenue's appeal was successful. en-us Wed, 27 Feb 1991 00:00:00 +0530 Sat, 27 Nov 2010 12:22:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55474 The Tribunal held that the deduction claimed by the assessee for income-tax liability of a dissolved partnership firm cannot be allowed in computing taxable income as it constitutes capital expenditure. The Tribunal distinguished between bad debts and income-tax liability, concluding that the latter falls under non-deductible amounts for business income computation. The decision overturned the CIT(A)'s ruling, directing the disallowance of the claimed amount in the taxable income calculation. As a result, the Revenue's appeal was successful. Case-Laws Income Tax Wed, 27 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55474