https://www.taxtmi.com/caselaws?id=28564 Payment of the predecessor transport company's income-tax arrears, made to secure release of attached buses and continue the transport business, was treated as deductible business expenditure under section 37(1). Although the assessee was not legally liable for the tax dues, the court applied the test of commercial expediency and held that a voluntary payment made to facilitate business operations may still be incurred wholly and exclusively for business purposes. The amount was therefore characterised as revenue expenditure rather than capital expenditure, and deduction was allowed. en-us Wed, 20 Jan 1982 00:00:00 +0530 Tue, 23 Feb 2010 16:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28564 Payment of the predecessor transport company's income-tax arrears, made to secure release of attached buses and continue the transport business, was treated as deductible business expenditure under section 37(1). Although the assessee was not legally liable for the tax dues, the court applied the test of commercial expediency and held that a voluntary payment made to facilitate business operations may still be incurred wholly and exclusively for business purposes. The amount was therefore characterised as revenue expenditure rather than capital expenditure, and deduction was allowed. Case-Laws Income Tax Wed, 20 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28564