https://www.taxtmi.com/caselaws?id=28938 A payment made to defend or preserve an existing business title is revenue expenditure, while a payment to acquire, perfect, cure or complete title to a capital asset is capital expenditure. Applying that distinction, the later compromise payment was treated as defensive and protective in character because the assessee had already acquired the business assets and the amount did not bring any new asset into existence or perfect title. The pleadings in the compromise suit were not treated as proof that the payment was balance purchase price. The sum was therefore deductible in computing business income. en-us Fri, 10 Jul 1981 00:00:00 +0530 Mon, 08 Mar 2010 17:20:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28938 A payment made to defend or preserve an existing business title is revenue expenditure, while a payment to acquire, perfect, cure or complete title to a capital asset is capital expenditure. Applying that distinction, the later compromise payment was treated as defensive and protective in character because the assessee had already acquired the business assets and the amount did not bring any new asset into existence or perfect title. The pleadings in the compromise suit were not treated as proof that the payment was balance purchase price. The sum was therefore deductible in computing business income. Case-Laws Income Tax Fri, 10 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28938