https://www.taxtmi.com/caselaws?id=49431 An advance made in the ordinary course of business as part payment for future sugarcane supplies was treated as a trading outgoing on revenue account, because it was connected with the purchase of raw material rather than the acquisition of an enduring asset or capital employed in a separate venture. The subsequent waiver of part of the amount did not change its character, since the substance of the payment remained linked to business operations. The governing distinction was whether the expenditure was laid out to obtain an enduring benefit or incurred in the normal course of carrying on the business. On that basis, the loss was revenue in nature and deductible in computing business income. en-us Thu, 03 May 1962 00:00:00 +0530 Fri, 26 Aug 2022 11:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49431 An advance made in the ordinary course of business as part payment for future sugarcane supplies was treated as a trading outgoing on revenue account, because it was connected with the purchase of raw material rather than the acquisition of an enduring asset or capital employed in a separate venture. The subsequent waiver of part of the amount did not change its character, since the substance of the payment remained linked to business operations. The governing distinction was whether the expenditure was laid out to obtain an enduring benefit or incurred in the normal course of carrying on the business. On that basis, the loss was revenue in nature and deductible in computing business income. Case-Laws Income Tax Thu, 03 May 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49431