1995 (3) TMI 6 - SC - Income Tax

Amount paid by the assessee to the British company - Tribunal was right in holding that the sum paid by the assessee was a permissible deduction under section 37(1) as revenue expenditure.

Summary

The Supreme Court upheld the Calcutta High Court's judgment in favor of the assessee, ruling that the amount paid to British Oxygen Co. Ltd. was a permissible deduction under section 37(1) of the Income-tax Act, 1961. The Court found that the expenditure was revenue, not capital, as it was incurred for running the business to produce profits. The appeals were dismissed with no costs.