https://www.taxtmi.com/caselaws?id=339977 Payment made to settle a club house liability and secure possession and ownership-related control of the club house was treated as capital expenditure rather than revenue outgo. Although commercial expediency can justify business payments, it does not convert an outlay that brings into existence or secures an asset of enduring nature into a deductible revenue item. The arrangement under the joint development agreement showed that the club house assets were intended to vest in the assessee, with plot purchasers having only membership rights. Because the payment was linked to acquisition and preservation of an asset forming part of the business structure, the expenditure was not allowable as revenue deduction. en-us Fri, 03 Mar 2017 00:00:00 +0530 Sat, 11 Mar 2017 07:35:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339977 Payment made to settle a club house liability and secure possession and ownership-related control of the club house was treated as capital expenditure rather than revenue outgo. Although commercial expediency can justify business payments, it does not convert an outlay that brings into existence or secures an asset of enduring nature into a deductible revenue item. The arrangement under the joint development agreement showed that the club house assets were intended to vest in the assessee, with plot purchasers having only membership rights. Because the payment was linked to acquisition and preservation of an asset forming part of the business structure, the expenditure was not allowable as revenue deduction. Case-Laws Income Tax Fri, 03 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339977