https://www.taxtmi.com/caselaws?id=17678 The court held that the payments made by the assessee to its retiring partners were not deductible as revenue expenditure under section 37 of the Income-tax Act, 1961. The court found that the payments were in lieu of the retiring partners' rights in the partnership and were considered capital in nature. The decision favored the Revenue, overturning the Tribunal's ruling. The court emphasized that the payments were for acquiring the rights of the outgoing partners and not for the running of the business. The case was disposed of with no order as to costs. en-us Fri, 10 Jan 1997 00:00:00 +0530 Thu, 24 Sep 2009 11:22:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17678 The court held that the payments made by the assessee to its retiring partners were not deductible as revenue expenditure under section 37 of the Income-tax Act, 1961. The court found that the payments were in lieu of the retiring partners' rights in the partnership and were considered capital in nature. The decision favored the Revenue, overturning the Tribunal's ruling. The court emphasized that the payments were for acquiring the rights of the outgoing partners and not for the running of the business. The case was disposed of with no order as to costs. Case-Laws Income Tax Fri, 10 Jan 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17678