An assessee was engaged in the business of cattle rearing. He incurred a loss in respect of animals which were used for the purposes of his business (otherwise than as stock-in trade) and which have died. Such expenditure shall be considered as

Question

Quizplus · Accepted Answer

The loss incurred due to the death of animals used for the purposes of a business (and not as stock-in-trade) is considered as a revenue expenditure. This is because it relates to the day-to-day operations of the business and does not provide a long-term benefit, unlike capital expenditures.

An Assessee Was Engaged in the Business of Cattle Rearing