https://www.taxtmi.com/caselaws?id=27977 The High Court determined that the Rs. 68,000 payment made by the assessee to M/s. Khanna Financiers upon cancellation of the agreement was a revenue expenditure and not a capital expenditure. The Court agreed with the Tribunal that the payment was necessary to alter the method of earning profits from the cinemas and did not result in acquiring a capital asset. The decision favored the assessee, concluding that the payment was essential to determine the true profit of the assessee-company during the remaining 63 weeks. en-us Thu, 24 May 1984 00:00:00 +0530 Wed, 17 Feb 2010 11:57:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27977 The High Court determined that the Rs. 68,000 payment made by the assessee to M/s. Khanna Financiers upon cancellation of the agreement was a revenue expenditure and not a capital expenditure. The Court agreed with the Tribunal that the payment was necessary to alter the method of earning profits from the cinemas and did not result in acquiring a capital asset. The decision favored the assessee, concluding that the payment was essential to determine the true profit of the assessee-company during the remaining 63 weeks. Case-Laws Income Tax Thu, 24 May 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27977