1951 (9) TMI 47 - HC - Income Tax

Summary

The High Court of Madras ruled that the payment made by the assessee for purchasing interest in a managing agency firm was properly treated as capital expenditure, not revenue expenditure. The assessee acquired a profit-yielding asset by purchasing the interest, making it capital expenditure. The court upheld the decision of the Revenue Authorities, and the assessee was directed to pay the costs of the Commissioner of Income-tax.