https://www.taxtmi.com/caselaws?id=7644 A payment made in the course of business may still be capital in nature if it secures an enduring commercial advantage by releasing the payer from a continuing contractual burden. The HC applied this principle to the termination payment made to former managing agents, finding that although the transaction was genuine and business-related, it freed the assessee from the remaining managing agency term and conferred a lasting benefit. The amount was therefore held to be capital expenditure and not deductible as revenue expenditure under section 10(2)(xv). en-us Fri, 26 Sep 1969 00:00:00 +0530 Tue, 17 Mar 2009 09:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7644 A payment made in the course of business may still be capital in nature if it secures an enduring commercial advantage by releasing the payer from a continuing contractual burden. The HC applied this principle to the termination payment made to former managing agents, finding that although the transaction was genuine and business-related, it freed the assessee from the remaining managing agency term and conferred a lasting benefit. The amount was therefore held to be capital expenditure and not deductible as revenue expenditure under section 10(2)(xv). Case-Laws Income Tax Fri, 26 Sep 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7644