https://www.taxtmi.com/caselaws?id=8611 Whether payments made to prospective bidders to prevent competition at an auction are deductible as revenue expenditure: HC applied the commercial expediency test (as in Bombay Steam Navigation) and held that because the ferry contract was for one year and the payments were made solely to secure a competitive advantage during that year (not to acquire an enduring asset or the business), the outlays were laid out wholly and exclusively for the purposes of the business. Outcome: the payments are revenue expenditures deductible against income. en-us Wed, 14 Jun 1972 00:00:00 +0530 Tue, 20 Jan 2026 12:35:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8611 Whether payments made to prospective bidders to prevent competition at an auction are deductible as revenue expenditure: HC applied the commercial expediency test (as in Bombay Steam Navigation) and held that because the ferry contract was for one year and the payments were made solely to secure a competitive advantage during that year (not to acquire an enduring asset or the business), the outlays were laid out wholly and exclusively for the purposes of the business. Outcome: the payments are revenue expenditures deductible against income. Case-Laws Income Tax Wed, 14 Jun 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8611