https://www.taxtmi.com/caselaws?id=71418 The Tribunal upheld the CIT's decision that the payment of Rs. 12,000 per annum to the retiring partner for the use of goodwill was capital expenditure and not deductible as a revenue expense. The Tribunal found the CIT's invocation of jurisdiction under Section 263 valid, emphasizing the failure of the Income-Tax Officer to properly investigate the claim. The Tribunal concluded that the payment was structured to settle the retiring partner's share of partnership assets, including goodwill, in staggered instalments, indicating its capital nature. The appeal was dismissed, affirming the capital nature of the payment and rejecting the applicability of cited case laws. en-us Mon, 06 Feb 1989 00:00:00 +0530 Sat, 23 Apr 2011 13:03:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71418 The Tribunal upheld the CIT's decision that the payment of Rs. 12,000 per annum to the retiring partner for the use of goodwill was capital expenditure and not deductible as a revenue expense. The Tribunal found the CIT's invocation of jurisdiction under Section 263 valid, emphasizing the failure of the Income-Tax Officer to properly investigate the claim. The Tribunal concluded that the payment was structured to settle the retiring partner's share of partnership assets, including goodwill, in staggered instalments, indicating its capital nature. The appeal was dismissed, affirming the capital nature of the payment and rejecting the applicability of cited case laws. Case-Laws Income Tax Mon, 06 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71418