https://www.taxtmi.com/caselaws?id=170729 A voluntary payment made to exhibitors to address poor film performance was treated as capital expenditure because it was not shown to arise from any contractual covenant or legal obligation. The record also did not establish that the recipient had authority to receive the amount or that the alleged actual losers received it. As the payment was made to preserve market standing and protect goodwill, it was characterised as a capital outlay and not an admissible deduction under section 37 of the Income-tax Act, 1961. en-us Tue, 27 May 2014 00:00:00 +0530 Fri, 13 Mar 2015 15:09:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=170729 A voluntary payment made to exhibitors to address poor film performance was treated as capital expenditure because it was not shown to arise from any contractual covenant or legal obligation. The record also did not establish that the recipient had authority to receive the amount or that the alleged actual losers received it. As the payment was made to preserve market standing and protect goodwill, it was characterised as a capital outlay and not an admissible deduction under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 27 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=170729