https://www.taxtmi.com/caselaws?id=276142 Payment made under a business arrangement for the continued use of a former proprietor's goodwill and trading name was treated as consideration for a commercial advantage, not as a mere distribution of profits. Because the payment reduced profits before real taxable profits were computed, it was deductible business expenditure. The arrangement did not bring into existence a permanent asset; the periodic fee for use of goodwill was revenue in character and incurred wholly and exclusively to conduct the business. The payment was therefore not capital outlay and was deductible under the income-tax provision. en-us Tue, 08 Oct 1946 00:00:00 +0530 Wed, 31 Oct 2018 11:46:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276142 Payment made under a business arrangement for the continued use of a former proprietor's goodwill and trading name was treated as consideration for a commercial advantage, not as a mere distribution of profits. Because the payment reduced profits before real taxable profits were computed, it was deductible business expenditure. The arrangement did not bring into existence a permanent asset; the periodic fee for use of goodwill was revenue in character and incurred wholly and exclusively to conduct the business. The payment was therefore not capital outlay and was deductible under the income-tax provision. Case-Laws Income Tax Tue, 08 Oct 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276142