https://www.taxtmi.com/caselaws?id=281787 Payment made to ex-agents to secure termination of agency arrangements, transition assistance, and temporary restraint of competition was held to be revenue expenditure. The Calcutta HC applied the fixed-capital versus circulating-capital distinction and the enduring benefit test, and found that the outlay did not create a capital asset, did not involve withdrawal of capital, and produced no realizable goodwill or other asset of a capital nature. It was therefore incurred in the course of taking over and carrying on the business through the assessee's own organisation and was allowable as a deduction under Section 10(2)(ix) of the Income Tax Act, 1922. en-us Thu, 19 Jul 1934 00:00:00 +0530 Sat, 06 Jul 2019 13:02:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=281787 Payment made to ex-agents to secure termination of agency arrangements, transition assistance, and temporary restraint of competition was held to be revenue expenditure. The Calcutta HC applied the fixed-capital versus circulating-capital distinction and the enduring benefit test, and found that the outlay did not create a capital asset, did not involve withdrawal of capital, and produced no realizable goodwill or other asset of a capital nature. It was therefore incurred in the course of taking over and carrying on the business through the assessee's own organisation and was allowable as a deduction under Section 10(2)(ix) of the Income Tax Act, 1922. Case-Laws Income Tax Thu, 19 Jul 1934 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=281787