https://www.taxtmi.com/caselaws?id=6371 Royalty payable on sugar manufactured was held to be revenue expenditure because it was directly linked to production and the carrying on of the business, not to the acquisition of a capital asset or an enduring advantage. The decisive test was the character of the payment and its relation to business operations; on the facts, the royalty attached to the raw output of the undertaking rather than to monopoly rights or capital structure. It was therefore allowable as a deduction in computing taxable profits under the Income-tax Act, 1922. en-us Tue, 26 Sep 1972 00:00:00 +0530 Thu, 04 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6371 Royalty payable on sugar manufactured was held to be revenue expenditure because it was directly linked to production and the carrying on of the business, not to the acquisition of a capital asset or an enduring advantage. The decisive test was the character of the payment and its relation to business operations; on the facts, the royalty attached to the raw output of the undertaking rather than to monopoly rights or capital structure. It was therefore allowable as a deduction in computing taxable profits under the Income-tax Act, 1922. Case-Laws Income Tax Tue, 26 Sep 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6371