1931 (12) TMI 14

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.... a limited company registered under the Indian Companies Act, carrying on business in the manufacture and sale of the "Minsararasam," a patent medicine, claimed a deduction from their income in the year of account of a sum of ₹ 13,000 odd as a lawfully deductible item. They claimed to deduct that sum under Section 10(2)(ix) of the Indian Income Tax Act as being expenditure incurred....

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....30 in five yearly instalments at not less than ₹ 16,000 a year with effect from 1st April, 1923, and (2) that after the expiry of five years a royalty of annas eight on every bottle of Minsararasam sold be paid to the party on the second part as long as the said Minsararasam Company, Ltd., is in existence. 2. With regard to the former clause, it is stated that the ₹ 81,000 have been p....

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.... business which in the year of account amounted to ₹ 28,000. The question referred to us depends entirely upon how the agreement before mentioned is construed. It is the petitioners' contention that Clause (2) does not relate to the consideration for the purchase of the rights and privileges of manufacturing, selling and generally dealing in the medicine but that the purchase price is th....