https://www.taxtmi.com/caselaws?id=22935 The High Court held that the payment made by the partnership firm to the former partner was a revenue expenditure for business purposes and allowable as a deduction under section 37 of the Income-tax Act, 1961. The court rejected the Tribunal's findings, emphasizing the former partner's legitimate interest in the partnership's assets, including goodwill. Additionally, the court clarified the distinction between revenue and capital expenditure based on the nature of the transaction and surrounding circumstances, ultimately ruling in favor of the assessee and allowing the deduction in computing the business income. en-us Thu, 21 Feb 1991 00:00:00 +0530 Tue, 15 Dec 2009 14:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22935 The High Court held that the payment made by the partnership firm to the former partner was a revenue expenditure for business purposes and allowable as a deduction under section 37 of the Income-tax Act, 1961. The court rejected the Tribunal's findings, emphasizing the former partner's legitimate interest in the partnership's assets, including goodwill. Additionally, the court clarified the distinction between revenue and capital expenditure based on the nature of the transaction and surrounding circumstances, ultimately ruling in favor of the assessee and allowing the deduction in computing the business income. Case-Laws Income Tax Thu, 21 Feb 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22935