https://www.taxtmi.com/caselaws?id=7037 Compensation paid to directors for premature termination of their service contracts was treated as allowable business expenditure because it was incurred on grounds of commercial expediency to reduce administrative costs and secure economy in management. Fees paid to architects for valuation of business premises in connection with municipal revaluation were also held deductible, as the expense was directed to obtaining expert valuation to protect the business from excessive municipal assessments and recurring outgoings. The governing principle stated is that expenditure incurred to facilitate business, safeguard business liabilities, or achieve business economy may be allowable as revenue expenditure even if it produces an immediate business advantage. en-us Mon, 07 Aug 1967 00:00:00 +0530 Sun, 08 Feb 2009 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7037 Compensation paid to directors for premature termination of their service contracts was treated as allowable business expenditure because it was incurred on grounds of commercial expediency to reduce administrative costs and secure economy in management. Fees paid to architects for valuation of business premises in connection with municipal revaluation were also held deductible, as the expense was directed to obtaining expert valuation to protect the business from excessive municipal assessments and recurring outgoings. The governing principle stated is that expenditure incurred to facilitate business, safeguard business liabilities, or achieve business economy may be allowable as revenue expenditure even if it produces an immediate business advantage. Case-Laws Income Tax Mon, 07 Aug 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7037