https://www.taxtmi.com/caselaws?id=7608 Compensation paid to ex-operators for taking over bus routes was treated as capital expenditure because it was incurred to acquire the unexpired permits and secure the routes free from private competition. The decisive test was the character of the advantage obtained: where the payment secures a business advantage in the nature of a capital asset, it is capital in nature rather than part of the ordinary running of the business. The fact that the payment was made in recurring instalments did not alter its true character. It was therefore not allowable as a revenue deduction in computing business income. en-us Tue, 22 Jul 1969 00:00:00 +0530 Thu, 05 Mar 2009 15:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7608 Compensation paid to ex-operators for taking over bus routes was treated as capital expenditure because it was incurred to acquire the unexpired permits and secure the routes free from private competition. The decisive test was the character of the advantage obtained: where the payment secures a business advantage in the nature of a capital asset, it is capital in nature rather than part of the ordinary running of the business. The fact that the payment was made in recurring instalments did not alter its true character. It was therefore not allowable as a revenue deduction in computing business income. Case-Laws Income Tax Tue, 22 Jul 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7608