1998 (12) TMI 11 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee regarding the expenditure incurred on maintaining horses intended for races. The court held that participation in races in the previous year was not a pre-condition for claiming the expenditure as a loss. The court found no error in the Tribunal's reasoning and stated that the horses being maintained for racing purposes met the requirements of the Income-tax Act. The expenditure on maintenance was considered a revenue expenditure under section 74A(3) of the Act. The judgment was in favor of the assessee with no costs.