https://www.taxtmi.com/caselaws?id=8460 Expenditure incurred to eliminate competition and secure a lasting business advantage is capital in nature, even if no tangible asset is acquired and the payment is not one-time. The Delhi HC note applies the character-of-advantage test: where the outlay is made to protect or enhance the business as a whole and to keep competitors out, it is treated as capital expenditure rather than revenue expenditure. On the facts, the payment to certain members whose trucks were not booked was made to ward off competition and preserve business monopoly, so it was not deductible in computing income. en-us Tue, 07 Sep 1971 00:00:00 +0530 Wed, 15 Apr 2009 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8460 Expenditure incurred to eliminate competition and secure a lasting business advantage is capital in nature, even if no tangible asset is acquired and the payment is not one-time. The Delhi HC note applies the character-of-advantage test: where the outlay is made to protect or enhance the business as a whole and to keep competitors out, it is treated as capital expenditure rather than revenue expenditure. On the facts, the payment to certain members whose trucks were not booked was made to ward off competition and preserve business monopoly, so it was not deductible in computing income. Case-Laws Income Tax Tue, 07 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8460