Legitimate Business Investment Tax Deduction Upheld: Company Successfully Claimed Write-Off Aligned with Organizational Objectives

HC held that the investment write-off claimed as a tax deduction was valid. The investment was made in furtherance of the company's memorandum of association objectives and was deemed unrecoverable. Unlike previous precedents involving capital compensation, this case involved a direct business investment. Given the identical factual and legal circumstances in a prior assessment year where the deduction was previously allowed, the court ruled in favor of the assessee, overturning the revenue department's disallowance and affirming the tax deduction's legitimacy. .....

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