https://www.taxtmi.com/caselaws?id=39796 Compensation paid to private permit holders under the Motor Vehicles Act, measured by the unexpired period of their permits, was treated as capital expenditure because it formed part of the statutory nationalisation scheme and secured an enduring business advantage by extinguishing competition; it was therefore not deductible under section 37 of the Income-tax Act. Expenditure incurred in shifting a regional workshop to new premises was also held capital in nature, since it was spent to place the business apparatus in a better position for the general advantage of the trade rather than as an ordinary operating cost. The deductions claimed on both counts were disallowed. en-us Mon, 16 Sep 1974 00:00:00 +0530 Tue, 20 Apr 2010 13:11:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39796 Compensation paid to private permit holders under the Motor Vehicles Act, measured by the unexpired period of their permits, was treated as capital expenditure because it formed part of the statutory nationalisation scheme and secured an enduring business advantage by extinguishing competition; it was therefore not deductible under section 37 of the Income-tax Act. Expenditure incurred in shifting a regional workshop to new premises was also held capital in nature, since it was spent to place the business apparatus in a better position for the general advantage of the trade rather than as an ordinary operating cost. The deductions claimed on both counts were disallowed. Case-Laws Income Tax Mon, 16 Sep 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39796