https://www.taxtmi.com/caselaws?id=6352 An amount retained from an assessee's commission in consideration of obtaining a sole selling agency was treated as capital expenditure, because its real purpose was to secure an enduring business advantage by discharging the previous agent's outstanding liability. The mode of discharge, whether by instalments or by deduction at source from commission, did not change the character of the payment. The retained sum therefore represented application of income towards the acquisition of a capital asset and was not allowable as revenue expenditure under section 10. en-us Tue, 29 Aug 1972 00:00:00 +0530 Mon, 19 Jan 2026 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6352 An amount retained from an assessee's commission in consideration of obtaining a sole selling agency was treated as capital expenditure, because its real purpose was to secure an enduring business advantage by discharging the previous agent's outstanding liability. The mode of discharge, whether by instalments or by deduction at source from commission, did not change the character of the payment. The retained sum therefore represented application of income towards the acquisition of a capital asset and was not allowable as revenue expenditure under section 10. Case-Laws Income Tax Tue, 29 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6352