Fortified Advance paid for Purchase of Property for business allowable as business expenditure

Assessee pointed out that the property in question was intended to be purchased for the purpose of constructing office premises and was directly related to the business of the assessee and therefore the deduction claimed should be allowed. As in the present case the Assessee did not acquire any capital asset and merely paid advance for acquiring capital asset for business purpose  which was not refunded so is a business loss and had to be allowed as deduction. 1. The assessee entered into an agreement dated 11.08.1999 with M/s. Hooghly Mills Ltd for purchase of the property owned by Ws. Hoog...