https://www.taxtmi.com/caselaws?id=179365 A payment of half-share of net profits under a composite commercial agreement was not allowable as a deduction in computing taxable income. It was not treated as rent, because the arrangement conferred several advantages, including control and conduct of the combined undertaking, and the amount was payable only if profits were earned. The agreement was closer to a joint adventure for a term of years than to a lease, so the payment was not shown to be expenditure incurred solely for earning the assessee's income. The statutory test for business expenditure was therefore not satisfied, and the deduction failed. en-us Thu, 08 Apr 1937 00:00:00 +0530 Sat, 27 Feb 2016 11:16:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179365 A payment of half-share of net profits under a composite commercial agreement was not allowable as a deduction in computing taxable income. It was not treated as rent, because the arrangement conferred several advantages, including control and conduct of the combined undertaking, and the amount was payable only if profits were earned. The agreement was closer to a joint adventure for a term of years than to a lease, so the payment was not shown to be expenditure incurred solely for earning the assessee's income. The statutory test for business expenditure was therefore not satisfied, and the deduction failed. Case-Laws Income Tax Thu, 08 Apr 1937 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179365