1995 (9) TMI 57 - HC - Income Tax

Summary

The High Court of Allahabad held that the payment of Rs. 34,665 by the assessee towards arrears of rent was considered a capital expenditure, not deductible for income tax purposes. The payment was deemed to be for acquiring goodwill, based on the terms of the agreement between the parties. The Tribunal's decision in favor of treating it as capital expenditure was upheld.