https://www.taxtmi.com/caselaws?id=6378 A contractual annual payment to the Government, made under agreements transferring profit-earning assets, was treated as revenue expenditure rather than capital expenditure. The payment was not part of a fixed capital price, had no terminal point, and was linked to annual profits under the commercial arrangement, showing that it was an obligation attached to the business's profit-making structure. On that construction, the amount was also regarded as an admissible deduction, whether characterised as an overriding charge at source, a revenue outgoing, or expenditure laid out wholly and exclusively for business purposes. The deduction was therefore allowable in computing business profits. en-us Fri, 27 Oct 1972 00:00:00 +0530 Thu, 15 Jan 2026 15:12:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6378 A contractual annual payment to the Government, made under agreements transferring profit-earning assets, was treated as revenue expenditure rather than capital expenditure. The payment was not part of a fixed capital price, had no terminal point, and was linked to annual profits under the commercial arrangement, showing that it was an obligation attached to the business's profit-making structure. On that construction, the amount was also regarded as an admissible deduction, whether characterised as an overriding charge at source, a revenue outgoing, or expenditure laid out wholly and exclusively for business purposes. The deduction was therefore allowable in computing business profits. Case-Laws Income Tax Fri, 27 Oct 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6378