https://www.taxtmi.com/caselaws?id=8682 A contractual payment made to secure trade-mark rights, technical know-how and distributorship benefits was held to be revenue expenditure because it was incurred to facilitate business operations and did not create an enduring capital asset or permanent advantage. The fact that the sum was described as meeting initial distributorship expenses did not change its character, since the payment was a stipulated condition of the agreement and the distributorship was co-terminous with the seven-year arrangement. The amount was therefore allowable as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922, and the reference was answered in favour of the assessee. en-us Thu, 25 Nov 1971 00:00:00 +0530 Tue, 02 Jun 2009 19:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8682 A contractual payment made to secure trade-mark rights, technical know-how and distributorship benefits was held to be revenue expenditure because it was incurred to facilitate business operations and did not create an enduring capital asset or permanent advantage. The fact that the sum was described as meeting initial distributorship expenses did not change its character, since the payment was a stipulated condition of the agreement and the distributorship was co-terminous with the seven-year arrangement. The amount was therefore allowable as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922, and the reference was answered in favour of the assessee. Case-Laws Income Tax Thu, 25 Nov 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8682