https://www.taxtmi.com/caselaws?id=8393 Payment made to a trade association for a propaganda campaign was treated as revenue expenditure where it was incurred to protect the assessee's business from threatened prohibition or compulsory colourisation. The controlling test was whether the outgoing was laid out wholly and exclusively for business purposes, assessed by commercial expediency, accepted trading practice and a real nexus with the trade. An expense need not produce immediate profit or be spent directly by the assessee if it facilitates carrying on the business and preserves its commercial position. On those principles, the payment was deductible in computing business income. en-us Mon, 09 Aug 1971 00:00:00 +0530 Sat, 11 Apr 2009 11:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8393 Payment made to a trade association for a propaganda campaign was treated as revenue expenditure where it was incurred to protect the assessee's business from threatened prohibition or compulsory colourisation. The controlling test was whether the outgoing was laid out wholly and exclusively for business purposes, assessed by commercial expediency, accepted trading practice and a real nexus with the trade. An expense need not produce immediate profit or be spent directly by the assessee if it facilitates carrying on the business and preserves its commercial position. On those principles, the payment was deductible in computing business income. Case-Laws Income Tax Mon, 09 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8393