https://www.taxtmi.com/caselaws?id=176235 A decretal amount paid to settle a bona fide dispute arising in the course of business was treated as revenue expenditure, because the liability originated in business operations and the payment was not of a capital nature. Applying the distinction between capital and revenue outgoings, and following the principles in Travancore Sugars & Chemicals Ltd. and the assessee's earlier case, the court held that such compromise payments are deductible in computing business income. The reference was answered in favour of the assessee, and the amount was allowed as business expenditure. en-us Fri, 18 Aug 1989 00:00:00 +0530 Thu, 17 Dec 2015 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176235 A decretal amount paid to settle a bona fide dispute arising in the course of business was treated as revenue expenditure, because the liability originated in business operations and the payment was not of a capital nature. Applying the distinction between capital and revenue outgoings, and following the principles in Travancore Sugars & Chemicals Ltd. and the assessee's earlier case, the court held that such compromise payments are deductible in computing business income. The reference was answered in favour of the assessee, and the amount was allowed as business expenditure. Case-Laws Income Tax Fri, 18 Aug 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176235