https://www.taxtmi.com/caselaws?id=193324 Lump sum payments made to secure exclusive supply rights for fixed terms were treated as capital outgoings rather than deductible revenue expenses. The decisive factor was the character of the advantage obtained: a single payment procured a continuing commercial benefit for periods of five to twenty-one years, pointing to an enduring asset or advantage instead of current trading expenditure. Where the arrangement was structured as a lease and sub-lease, its legal and commercial substance indicated acquisition of an interest in land, reinforcing the capital nature of the payments. Motive or commercial pressure was not determinative; the nature of the advantage acquired controlled the classification. en-us Tue, 27 Jul 1965 00:00:00 +0530 Mon, 24 Jul 2017 16:55:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193324 Lump sum payments made to secure exclusive supply rights for fixed terms were treated as capital outgoings rather than deductible revenue expenses. The decisive factor was the character of the advantage obtained: a single payment procured a continuing commercial benefit for periods of five to twenty-one years, pointing to an enduring asset or advantage instead of current trading expenditure. Where the arrangement was structured as a lease and sub-lease, its legal and commercial substance indicated acquisition of an interest in land, reinforcing the capital nature of the payments. Motive or commercial pressure was not determinative; the nature of the advantage acquired controlled the classification. Case-Laws Income Tax Tue, 27 Jul 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193324