https://www.taxtmi.com/caselaws?id=18930 A payment made under a factory tenancy arrangement was treated as capital expenditure where the assessee undertook to clear arrears of rent and penalty in exchange for the earlier firm waiving any claim to goodwill. The court construed the arrangement as one by which the assessee effectively acquired the benefit of the goodwill and tenancy, so the amount was not merely a discharge of past rent liability. Because the payment secured an enduring advantage, it was characterised as an capital outlay and denied deduction as revenue expenditure. en-us Fri, 22 Sep 1995 00:00:00 +0530 Mon, 02 Nov 2009 18:31:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18930 A payment made under a factory tenancy arrangement was treated as capital expenditure where the assessee undertook to clear arrears of rent and penalty in exchange for the earlier firm waiving any claim to goodwill. The court construed the arrangement as one by which the assessee effectively acquired the benefit of the goodwill and tenancy, so the amount was not merely a discharge of past rent liability. Because the payment secured an enduring advantage, it was characterised as an capital outlay and denied deduction as revenue expenditure. Case-Laws Income Tax Fri, 22 Sep 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18930