https://www.taxtmi.com/caselaws?id=197887 Payment made to secure the right to carry on a trading operation and obtain raw material for business purposes was treated as revenue expenditure, not capital expenditure. The decisive test was the true character of the outlay: an amount spent to acquire an enduring asset or advantage is capital, but an amount laid out in the ordinary course of earning profits is revenue. Because the arrangement for supplying gulmohwa flower was short-term, working in nature, and did not create any permanent source of income or enduring capital asset, the expenditure was held deductible under section 10(2)(xv). en-us Thu, 05 Jan 1961 00:00:00 +0530 Wed, 17 Jan 2018 16:05:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197887 Payment made to secure the right to carry on a trading operation and obtain raw material for business purposes was treated as revenue expenditure, not capital expenditure. The decisive test was the true character of the outlay: an amount spent to acquire an enduring asset or advantage is capital, but an amount laid out in the ordinary course of earning profits is revenue. Because the arrangement for supplying gulmohwa flower was short-term, working in nature, and did not create any permanent source of income or enduring capital asset, the expenditure was held deductible under section 10(2)(xv). Case-Laws Income Tax Thu, 05 Jan 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197887