https://www.taxtmi.com/caselaws?id=22458 HC held that the assessee's lump-sum payment to a rival partnership, under an agreement restricting the rival from setting up a competing ink business, constituted capital expenditure. On examining the agreement, dissolution deed and surrounding circumstances, the court found that the payment secured an enduring commercial advantage: a substantive and lasting right and protection to conduct the manufacture and sale of ink free from potentially damaging competition for as long as the assessee carried on that business. As the expenditure resulted in acquisition of an enduring right rather than meeting a recurring business outlay, it was not allowable as revenue expenditure. en-us Wed, 19 Dec 1990 00:00:00 +0530 Fri, 05 Dec 2025 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22458 HC held that the assessee's lump-sum payment to a rival partnership, under an agreement restricting the rival from setting up a competing ink business, constituted capital expenditure. On examining the agreement, dissolution deed and surrounding circumstances, the court found that the payment secured an enduring commercial advantage: a substantive and lasting right and protection to conduct the manufacture and sale of ink free from potentially damaging competition for as long as the assessee carried on that business. As the expenditure resulted in acquisition of an enduring right rather than meeting a recurring business outlay, it was not allowable as revenue expenditure. Case-Laws Income Tax Wed, 19 Dec 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22458