https://www.taxtmi.com/caselaws?id=276519 Payments made under the agreements were treated as part of the consideration for acquiring the undertaking, so they formed part of the purchase price rather than expenditure incurred in carrying on the business. Because outlay directed to acquisition of a concern is capital in nature, it was not deductible as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The fact that the amount was described by reference to net profits did not change its essential character as acquisition cost. The deduction was therefore disallowed and the question was answered against the assessee. en-us Sat, 20 Aug 1960 00:00:00 +0530 Tue, 14 Jul 2020 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276519 Payments made under the agreements were treated as part of the consideration for acquiring the undertaking, so they formed part of the purchase price rather than expenditure incurred in carrying on the business. Because outlay directed to acquisition of a concern is capital in nature, it was not deductible as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. The fact that the amount was described by reference to net profits did not change its essential character as acquisition cost. The deduction was therefore disallowed and the question was answered against the assessee. Case-Laws Income Tax Sat, 20 Aug 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276519