https://www.taxtmi.com/caselaws?id=7331 Foreign tour expenses incurred by a managing agent's director were held to be revenue expenditure because the proper test was the nature and object of the outlay. Expenditure to acquire an asset or enduring advantage is capital, while expenditure incurred for running the business and earning profits is revenue. The court focused on the assessee's purpose in improving the managed companies to increase its own commission income. Any enduring benefit to the managed companies did not make the expense capital in the hands of the managing agent. The expenses were therefore allowable as business expenditure. en-us Fri, 17 May 1968 00:00:00 +0530 Tue, 17 Feb 2009 20:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7331 Foreign tour expenses incurred by a managing agent's director were held to be revenue expenditure because the proper test was the nature and object of the outlay. Expenditure to acquire an asset or enduring advantage is capital, while expenditure incurred for running the business and earning profits is revenue. The court focused on the assessee's purpose in improving the managed companies to increase its own commission income. Any enduring benefit to the managed companies did not make the expense capital in the hands of the managing agent. The expenses were therefore allowable as business expenditure. Case-Laws Income Tax Fri, 17 May 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7331