https://www.taxtmi.com/caselaws?id=69319 Compensation attributable to unexpired route permits, paid as part of acquiring a transport undertaking, was treated as capital expenditure rather than revenue expenditure. The permits transferred by operation of law with the stage carriages, and the payment formed part of the overall acquisition cost of the undertaking, not prepaid expenditure or goodwill. Because a stage carriage has no commercial utility without a valid permit, the permit value was held to be inseparable from the value of the vehicles and part of the capital asset. Depreciation was therefore allowable on the combined value, and business income had to be recomputed after allowing admissible depreciation. en-us Sat, 29 Sep 1979 00:00:00 +0530 Wed, 06 Apr 2011 12:02:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69319 Compensation attributable to unexpired route permits, paid as part of acquiring a transport undertaking, was treated as capital expenditure rather than revenue expenditure. The permits transferred by operation of law with the stage carriages, and the payment formed part of the overall acquisition cost of the undertaking, not prepaid expenditure or goodwill. Because a stage carriage has no commercial utility without a valid permit, the permit value was held to be inseparable from the value of the vehicles and part of the capital asset. Depreciation was therefore allowable on the combined value, and business income had to be recomputed after allowing admissible depreciation. Case-Laws Income Tax Sat, 29 Sep 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69319