1972 (2) TMI 31 - HC - Income Tax

Summary

The High Court of Andhra Pradesh ruled that the expenditure incurred for a director's tour to Japan for negotiating a technical collaboration was considered capital expenditure, not revenue expenditure. The court held that the expenditure was for initiating a new business venture, which would bring enduring benefits. Therefore, the deduction claimed as revenue expenditure was disallowed. The judgment favored the department, and the assessee was ordered to bear the costs.