https://www.taxtmi.com/caselaws?id=8040 A company's contribution to an employees' welfare fund was treated as deductible revenue expenditure rather than capital expenditure because it was made for commercial expediency and not to acquire a capital asset or enduring benefit in the capital sense. The fund was intended for employee welfare purposes, including medical aid, education grants, funeral expenses, housing facilities, and similar benefits, and the company had no pre-existing contractual liability to make the contribution. On those facts, the English enduring-advantage principle was held inapplicable, and the welfare-fund contribution was allowable as revenue expenditure under the Indian Income-tax Act, 1922. en-us Mon, 06 Apr 1970 00:00:00 +0530 Fri, 27 Mar 2009 12:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8040 A company's contribution to an employees' welfare fund was treated as deductible revenue expenditure rather than capital expenditure because it was made for commercial expediency and not to acquire a capital asset or enduring benefit in the capital sense. The fund was intended for employee welfare purposes, including medical aid, education grants, funeral expenses, housing facilities, and similar benefits, and the company had no pre-existing contractual liability to make the contribution. On those facts, the English enduring-advantage principle was held inapplicable, and the welfare-fund contribution was allowable as revenue expenditure under the Indian Income-tax Act, 1922. Case-Laws Income Tax Mon, 06 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8040