https://www.taxtmi.com/caselaws?id=289596 A payment made to terminate an onerous managing agency contract was treated as revenue expenditure because it did not create any capital asset or enlarge the company's profit-earning structure. The payment was made to free the business from recurring contractual liabilities and improve commercial efficiency, which satisfied the test of business expediency. On that basis, it was held to have been laid out wholly and exclusively for the purposes of the assessee's business and therefore deductible under section 10(2)(xv). en-us Tue, 28 Oct 1958 00:00:00 +0530 Fri, 07 Aug 2020 18:05:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289596 A payment made to terminate an onerous managing agency contract was treated as revenue expenditure because it did not create any capital asset or enlarge the company's profit-earning structure. The payment was made to free the business from recurring contractual liabilities and improve commercial efficiency, which satisfied the test of business expediency. On that basis, it was held to have been laid out wholly and exclusively for the purposes of the assessee's business and therefore deductible under section 10(2)(xv). Case-Laws Income Tax Tue, 28 Oct 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289596