https://www.taxtmi.com/caselaws?id=6361 Compensation paid to terminate an onerous managing agency, incurred for commercial expediency and a change in business pattern, was treated as revenue expenditure rather than capital expenditure. The payment merely removed a recurring business burden and produced future savings, but it did not create any enduring asset, income-yielding advantage, or other capital benefit. On that reasoning, the expenditure was allowable as a business deduction and not disallowed as capital in nature. en-us Tue, 03 Oct 1972 00:00:00 +0530 Tue, 20 Jan 2026 10:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6361 Compensation paid to terminate an onerous managing agency, incurred for commercial expediency and a change in business pattern, was treated as revenue expenditure rather than capital expenditure. The payment merely removed a recurring business burden and produced future savings, but it did not create any enduring asset, income-yielding advantage, or other capital benefit. On that reasoning, the expenditure was allowable as a business deduction and not disallowed as capital in nature. Case-Laws Income Tax Tue, 03 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6361