https://www.taxtmi.com/caselaws?id=49589 Amounts paid to trustees and under an insurance policy were held not to be "expenditure" for deduction purposes under section 10(2)(xv) of the Indian Income-tax Act, 1922. The provision requires actual outlay of money that is irretrievably spent; a mere setting aside of funds for a future liability does not qualify. Because the sums could revert to the assessee in certain contingencies, and the policy terms showed a possible resulting trust and power of surrender, the liability remained contingent rather than finally incurred. The payments were therefore not deductible and the issue was resolved in favour of the Revenue. en-us Tue, 05 May 1959 00:00:00 +0530 Tue, 01 Jul 2025 18:47:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49589 Amounts paid to trustees and under an insurance policy were held not to be "expenditure" for deduction purposes under section 10(2)(xv) of the Indian Income-tax Act, 1922. The provision requires actual outlay of money that is irretrievably spent; a mere setting aside of funds for a future liability does not qualify. Because the sums could revert to the assessee in certain contingencies, and the policy terms showed a possible resulting trust and power of surrender, the liability remained contingent rather than finally incurred. The payments were therefore not deductible and the issue was resolved in favour of the Revenue. Case-Laws Income Tax Tue, 05 May 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49589