https://www.taxtmi.com/caselaws?id=5840 A payment made long after the construction of a dam and road, with no legal obligation or demonstrated business nexus, was treated as a voluntary act of good citizenship and not as expenditure laid out wholly and exclusively for business; it was therefore non-deductible. By contrast, a contribution under a sugarcane development scheme for roads around a factory was treated as revenue expenditure because it facilitated transport of cane and sugar, did not create any asset or enlarge the profit-making structure, and merely improved business operations, even though the benefit was enduring. The ratio is that enduring benefit is not decisive where the expenditure is incurred for operational efficiency rather than capital advantage. en-us Tue, 26 Aug 1980 00:00:00 +0530 Fri, 28 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5840 A payment made long after the construction of a dam and road, with no legal obligation or demonstrated business nexus, was treated as a voluntary act of good citizenship and not as expenditure laid out wholly and exclusively for business; it was therefore non-deductible. By contrast, a contribution under a sugarcane development scheme for roads around a factory was treated as revenue expenditure because it facilitated transport of cane and sugar, did not create any asset or enlarge the profit-making structure, and merely improved business operations, even though the benefit was enduring. The ratio is that enduring benefit is not decisive where the expenditure is incurred for operational efficiency rather than capital advantage. Case-Laws Income Tax Tue, 26 Aug 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5840