https://www.taxtmi.com/caselaws?id=37507 Compensation paid to chief agents and special agents on termination of agency contracts under the Life Insurance Corporation Act was treated as revenue expenditure because it discharged a recurring business liability and did not create any enduring asset or advantage; the deduction was allowed. The statutory amount payable out of surplus to the Central Government was held not to be diverted at source by an overriding title, because the liability arose only after the actuarial surplus had accrued under the special insurance computation scheme, so the amount remained part of the assessee's income and was not deductible from the taxable surplus. en-us Tue, 08 Nov 1977 00:00:00 +0530 Tue, 30 Mar 2010 12:08:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37507 Compensation paid to chief agents and special agents on termination of agency contracts under the Life Insurance Corporation Act was treated as revenue expenditure because it discharged a recurring business liability and did not create any enduring asset or advantage; the deduction was allowed. The statutory amount payable out of surplus to the Central Government was held not to be diverted at source by an overriding title, because the liability arose only after the actuarial surplus had accrued under the special insurance computation scheme, so the amount remained part of the assessee's income and was not deductible from the taxable surplus. Case-Laws Income Tax Tue, 08 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37507