https://www.taxtmi.com/caselaws?id=7367 Payment made to terminate an onerous managing agency arrangement was treated as revenue expenditure and therefore allowable as a business deduction. The payment was incurred because the existing agency had become commercially inconvenient and carried recurring liabilities, and it was directed to the conduct of the assessee-company's existing trade. As it did not bring into existence any new asset, right, privilege, or other enduring capital advantage, and was not connected with the initiation or expansion of a new business, it was not capital expenditure. en-us Thu, 08 Feb 1968 00:00:00 +0530 Wed, 18 Feb 2009 18:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7367 Payment made to terminate an onerous managing agency arrangement was treated as revenue expenditure and therefore allowable as a business deduction. The payment was incurred because the existing agency had become commercially inconvenient and carried recurring liabilities, and it was directed to the conduct of the assessee-company's existing trade. As it did not bring into existence any new asset, right, privilege, or other enduring capital advantage, and was not connected with the initiation or expansion of a new business, it was not capital expenditure. Case-Laws Income Tax Thu, 08 Feb 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7367