https://www.taxtmi.com/caselaws?id=36342 The Tribunal concluded that the payment of Rs. one lakh to the retiring partners was a capital expenditure related to the reconstitution of the firm, not deductible as a revenue expense. The Tribunal found no legal difficulty in disallowing the deduction, emphasizing the structural change in the firm. The claim to deduct Rs. 51,924 for stocks and licenses appreciation was rejected, as the payment was for acquiring the retiring partners' interests in the firm's assets, treated as a capital receipt. The Tribunal's decision was upheld, denying the deduction and affirming the capital nature of the payment. en-us Wed, 12 Dec 1979 00:00:00 +0530 Sat, 20 Mar 2010 17:35:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36342 The Tribunal concluded that the payment of Rs. one lakh to the retiring partners was a capital expenditure related to the reconstitution of the firm, not deductible as a revenue expense. The Tribunal found no legal difficulty in disallowing the deduction, emphasizing the structural change in the firm. The claim to deduct Rs. 51,924 for stocks and licenses appreciation was rejected, as the payment was for acquiring the retiring partners' interests in the firm's assets, treated as a capital receipt. The Tribunal's decision was upheld, denying the deduction and affirming the capital nature of the payment. Case-Laws Income Tax Wed, 12 Dec 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36342