https://www.taxtmi.com/caselaws?id=195193 A compulsory municipal levy on trading companies, imposed on paid-up capital, was held not to be a tax on profits, income or profession and not capital expenditure, because it did not diminish capital. The decisive test was whether the payment was incurred solely for earning profits and gains; as it was a necessary condition precedent to carrying on trade within the municipality, it qualified as expenditure wholly and exclusively laid out for business purposes. The levy was therefore deductible as business expenditure, and the assessee succeeded. en-us Fri, 21 Mar 1924 00:00:00 +0530 Wed, 18 Oct 2017 13:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=195193 A compulsory municipal levy on trading companies, imposed on paid-up capital, was held not to be a tax on profits, income or profession and not capital expenditure, because it did not diminish capital. The decisive test was whether the payment was incurred solely for earning profits and gains; as it was a necessary condition precedent to carrying on trade within the municipality, it qualified as expenditure wholly and exclusively laid out for business purposes. The levy was therefore deductible as business expenditure, and the assessee succeeded. Case-Laws Income Tax Fri, 21 Mar 1924 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=195193