https://www.taxtmi.com/caselaws?id=28296 The court held that the payment of Rs. 1,28,384 by the assessee-firm to foreign buyers was an admissible deduction under section 37 of the Income-tax Act, 1961. The court found that the expenditure was wholly and exclusively for the purpose of the assessee's business and not of a capital nature. The court emphasized that the payments were made to preserve and enhance business reputation and customer relations, distinguishing them from capital expenditures. Consequently, the court ruled in favor of the assessee, directing the Department to bear the costs of the reference. en-us Wed, 05 Aug 1981 00:00:00 +0530 Sat, 20 Feb 2010 12:14:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28296 The court held that the payment of Rs. 1,28,384 by the assessee-firm to foreign buyers was an admissible deduction under section 37 of the Income-tax Act, 1961. The court found that the expenditure was wholly and exclusively for the purpose of the assessee's business and not of a capital nature. The court emphasized that the payments were made to preserve and enhance business reputation and customer relations, distinguishing them from capital expenditures. Consequently, the court ruled in favor of the assessee, directing the Department to bear the costs of the reference. Case-Laws Income Tax Wed, 05 Aug 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28296