https://www.taxtmi.com/caselaws?id=8021 Pension payments to long-serving former employees were held to be revenue expenditure, because the arrangement had to be read as a whole in light of the surrounding facts and did not create a new capital asset or enduring advantage; the covenant against rival employment merely protected existing goodwill. The payments were also wholly and exclusively laid out for the business, since the employees had rendered long service to the same concern, the arrangement was commercially bona fide, and the absence of a general pension scheme was not decisive. The amounts were therefore deductible business expenditure and not disallowed as capital outlay under the Income-tax Act, 1922. en-us Mon, 18 Nov 1968 00:00:00 +0530 Thu, 02 Jan 2020 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8021 Pension payments to long-serving former employees were held to be revenue expenditure, because the arrangement had to be read as a whole in light of the surrounding facts and did not create a new capital asset or enduring advantage; the covenant against rival employment merely protected existing goodwill. The payments were also wholly and exclusively laid out for the business, since the employees had rendered long service to the same concern, the arrangement was commercially bona fide, and the absence of a general pension scheme was not decisive. The amounts were therefore deductible business expenditure and not disallowed as capital outlay under the Income-tax Act, 1922. Case-Laws Income Tax Mon, 18 Nov 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8021