https://www.taxtmi.com/caselaws?id=18079 The High Court ruled in favor of the assessee, MICO, holding that the payment of Rs. 99 lakhs to GEC for premature termination of a distributor's agreement was allowable as revenue expenditure under section 37 of the Income-tax Act. The Court found the payment to be guided by commercial expediency and reasonable, emphasizing that commercial decisions cannot be strictly judged by legal liability. The Court also determined that the agreement superseded the earlier protocol, except for the Tribunal's finding on this issue. en-us Tue, 09 Jan 1996 00:00:00 +0530 Sat, 26 Sep 2009 15:58:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18079 The High Court ruled in favor of the assessee, MICO, holding that the payment of Rs. 99 lakhs to GEC for premature termination of a distributor's agreement was allowable as revenue expenditure under section 37 of the Income-tax Act. The Court found the payment to be guided by commercial expediency and reasonable, emphasizing that commercial decisions cannot be strictly judged by legal liability. The Court also determined that the agreement superseded the earlier protocol, except for the Tribunal's finding on this issue. Case-Laws Income Tax Tue, 09 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18079