TaxTMI 
TaxTMI 
1951 (1) TMI 35
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....s follows:- "(1) The tax shall be payable by an assessee under the head 'profits and gains of business, profession or vocation' in respect of the profits or gains of any business, profession or vocation carried on by him. (2) Such profits or gains shall be computed after making the following allowances, namely:- (xv) any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively for the purposes of such business, profession or vocation". The assessee is a private limited company consisting of four shareholders. It has its registered office at 161/1, Harrison Road, Calcutta, and carried on business as dealers in petroleum and mobil oil in....
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....h its allied business in petrol and mobil oil under one management without any fear of competition from the First Party either directly and indirectly and in view of the fact that the First Party is being benefited under the present agreement by way of more efficient management, lesser establishment charges and better rate of profits the First Party agrees not to participate during the continuance of the agreement either directly or indirectly in its own name or in the benami name of anybody else in any business in petrol, mobil oil and kerosene oil under and/or with the Standard Vacuum Oil Company, within the Province of Assam without the consent of the Second Party first had and obtained in writing. Clause (6).-That the Second Party so l....
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....lusively for the purpose of the business. The following conditions must concur in order that a particular item of expenditure may be deductible under this clause :- (1) The expenditure must have been incurred in the accounting year. (2) The expenditure must be in respect of a business which was carried on by the assessee in the accounting year and the profits of which are to be computed and assessed. (3) It should not be in the nature of personal expenses of the assessee. (4) It should not be in the nature of capital expenditure. (5) It must have been laid out or expended wholly and exclusively for the purpose of such business. It is not possible to lay down any hard and fast rule for distinguishing a capital expenditure from revenue....