https://www.taxtmi.com/caselaws?id=191690 Expenditure paid for the exclusive right to collect chanks was held to be revenue in character, not capital outlay, under the distinction between capital and revenue expenditure. The decisive test was whether the payment secured an asset or enduring advantage, or only rights over circulating capital. Because the assessee acquired merely the right to win and take chanks for business purposes, without any interest in the sea or the source of supply, the contract was treated as analogous to purchase of goods rather than acquisition of a fixed asset. The amount was therefore deductible as business expenditure and the reference was answered for the assessee. en-us Thu, 02 Apr 1953 00:00:00 +0530 Thu, 13 Apr 2017 14:32:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191690 Expenditure paid for the exclusive right to collect chanks was held to be revenue in character, not capital outlay, under the distinction between capital and revenue expenditure. The decisive test was whether the payment secured an asset or enduring advantage, or only rights over circulating capital. Because the assessee acquired merely the right to win and take chanks for business purposes, without any interest in the sea or the source of supply, the contract was treated as analogous to purchase of goods rather than acquisition of a fixed asset. The amount was therefore deductible as business expenditure and the reference was answered for the assessee. Case-Laws Income Tax Thu, 02 Apr 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191690