https://www.taxtmi.com/caselaws?id=7555 A lump-sum payment made to terminate a managing agency and secure relief from future obligations was treated as capital expenditure because it brought an enduring advantage to the company. The Court distinguished payments made in the ordinary course of business to save recurring working expenses, holding that the true character of the outgoing depends on the nature of the benefit obtained, not on the payment's form or commercial expediency. On the facts, the amount was not deductible as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Thu, 06 Mar 1969 00:00:00 +0530 Wed, 25 Feb 2009 19:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7555 A lump-sum payment made to terminate a managing agency and secure relief from future obligations was treated as capital expenditure because it brought an enduring advantage to the company. The Court distinguished payments made in the ordinary course of business to save recurring working expenses, holding that the true character of the outgoing depends on the nature of the benefit obtained, not on the payment's form or commercial expediency. On the facts, the amount was not deductible as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Thu, 06 Mar 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7555