https://www.taxtmi.com/caselaws?id=38097 A lump-sum payment made under a settlement to secure hospital treatment for non-covered employees at no cost or concessional cost for an indefinite period was held to be capital expenditure. Although incurred in the course of business and prompted by commercial expediency, the true character of the payment was determined by the enduring advantage obtained: it created a benefit analogous to fixed capital and relieved a recurring liability. On the facts, there was no mere reimbursement of annual business expense and no revenue liability of the kind needed for deduction under section 37(1) of the Income-tax Act, 1961. en-us Tue, 31 Jan 1978 00:00:00 +0530 Sat, 03 Apr 2010 11:51:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38097 A lump-sum payment made under a settlement to secure hospital treatment for non-covered employees at no cost or concessional cost for an indefinite period was held to be capital expenditure. Although incurred in the course of business and prompted by commercial expediency, the true character of the payment was determined by the enduring advantage obtained: it created a benefit analogous to fixed capital and relieved a recurring liability. On the facts, there was no mere reimbursement of annual business expense and no revenue liability of the kind needed for deduction under section 37(1) of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 31 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38097