Supreme Court affirms deduction for business expenses under Income-tax Act

The Supreme Court upheld the Calcutta High Court's judgment in favor of the assessee, allowing the amount paid to British Oxygen Co. Ltd. as a deduction under section 37(1) of the Income-tax Act, 1961. The Court determined the expenditure was revenue in nature, incurred for business operations to generate profits, and not capital. The appeals were dismissed without costs.

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The Supreme Court upheld the Calcutta High Court's judgment in favor of the assessee, ruling that the amount paid to British Oxygen Co. Ltd. was a permissible deduction under section 37(1) of the Income-tax Act, 1961. The Court found that the expenditure was revenue, not capital, as it was incurred for running the business to produce profits. The appeals were dismissed with no costs.

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