https://www.taxtmi.com/caselaws?id=186158 Amounts paid to a retired partner for temporary use of export quota pending separate re-allocation were held to be revenue expenditure. The court treated the payments as consideration for continued use of an existing quota arrangement, not as a capital outlay to acquire an enduring asset or fresh quota rights. Computation of the amount by reference to profits did not alter its character, because the relevant test was the quality of the payment rather than its measure. The expenditure was therefore deductible as part of the cost of goods purchased for export and was not capital in nature. en-us Wed, 13 Mar 1957 00:00:00 +0530 Thu, 08 Sep 2016 17:23:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186158 Amounts paid to a retired partner for temporary use of export quota pending separate re-allocation were held to be revenue expenditure. The court treated the payments as consideration for continued use of an existing quota arrangement, not as a capital outlay to acquire an enduring asset or fresh quota rights. Computation of the amount by reference to profits did not alter its character, because the relevant test was the quality of the payment rather than its measure. The expenditure was therefore deductible as part of the cost of goods purchased for export and was not capital in nature. Case-Laws Income Tax Wed, 13 Mar 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186158