Foreign medical study tour expense held revenue in nature where it maintained existing professional efficiency and knowledge.

Expenditure incurred by a surgeon on a foreign study tour to keep abreast of modern surgical techniques was held not to be capital expenditure because it did not create any tangible asset or bring in a new source of income, nor was it undertaken to enter a new profession, enlarge its scope, or obtain additional qualifications. The outlay was directed only to maintaining existing professional efficiency and current technical knowledge, and the fact that the study was abroad did not change its character. It was therefore allowable as a deduction in favour of the assessee.

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Issues: Whether expenditure incurred by a surgeon on a foreign study tour to keep abreast of modern surgical techniques was capital expenditure and therefore not allowable as a deduction.

Analysis: The tour did not bring into existence any tangible asset, nor was it undertaken to initiate a new profession, enlarge its scope, or secure additional qualifications. It was undertaken to maintain existing professional efficiency and to keep the assessee's knowledge in line with current developments in surgery. Expenditure of that character is not capital in nature merely because it may yield a lasting advantage in professional competence. The fact that the study was conducted abroad did not alter the legal character of the outlay.

Conclusion: The expenditure was not capital expenditure and was allowable as a deduction. The answer was in favour of the assessee.

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