https://www.taxtmi.com/caselaws?id=56197 Expenditure incurred to set up a new unit as an extension of an existing business is capital in nature where it relates to enlarging the profit-earning structure rather than the ordinary conduct of business. On the facts, the Kandla project was treated as an extension of the assessee's manufacturing business, and the outlay was connected with bringing that expanded unit into existence. The principle applied was the settled distinction between capital outlay for initiation or expansion of the profit-making apparatus and revenue expenditure for carrying on business operations. The amount was therefore not allowable as a revenue deduction. en-us Fri, 29 Oct 1982 00:00:00 +0530 Thu, 02 Dec 2010 12:06:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56197 Expenditure incurred to set up a new unit as an extension of an existing business is capital in nature where it relates to enlarging the profit-earning structure rather than the ordinary conduct of business. On the facts, the Kandla project was treated as an extension of the assessee's manufacturing business, and the outlay was connected with bringing that expanded unit into existence. The principle applied was the settled distinction between capital outlay for initiation or expansion of the profit-making apparatus and revenue expenditure for carrying on business operations. The amount was therefore not allowable as a revenue deduction. Case-Laws Income Tax Fri, 29 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56197