https://www.taxtmi.com/caselaws?id=180623 A lump sum paid to terminate an agency and end future commission liabilities was treated as revenue expenditure, because its character depended on the payer's business purpose and not on the recipient's receipt being capital in nature. The payment was not shown to be a profit distribution or a non-business outlay, and the fact that the benefit extended beyond the year of account did not make it capital. The text also states that a wrongly allowed deduction may cause income to escape assessment, so section 34 can reach an erroneous allowance and permit reopening on that basis. en-us Wed, 08 Feb 1933 00:00:00 +0530 Wed, 30 Mar 2016 17:31:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180623 A lump sum paid to terminate an agency and end future commission liabilities was treated as revenue expenditure, because its character depended on the payer's business purpose and not on the recipient's receipt being capital in nature. The payment was not shown to be a profit distribution or a non-business outlay, and the fact that the benefit extended beyond the year of account did not make it capital. The text also states that a wrongly allowed deduction may cause income to escape assessment, so section 34 can reach an erroneous allowance and permit reopening on that basis. Case-Laws Income Tax Wed, 08 Feb 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180623