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TMI Blog1953 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... in this reference is a very short one and does not present much difficulty. The question is: Whether the payment of ₹ 5000 by the assessee to Mr. Sambamurthi, was capital expenditure. The assessee was a registered accountant. He was employed by one Mr. Sambamurthi who was also doing similar business at Karaikudi. After some time, the assessee was taken as a working partner of the Karai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portant. It states that no case of the Karaikudi office is to be taken by Sambamurthi without the consent of the assessee and without in office being opened by Sambamurthi at Madras and without repayment of half the fee collected for such case during the period the (consideration for the) goodwill has been paid by the assessee to Sambamurthi. 2. Sambamurthi, in pursuance of this agreement, rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad the user of the goodwill and did not become the owner and therefore, the share of the profits paid to the widow of the previous owner of the goodwill was in the nature of a revenue expenditure. Tile test to be applied in order to determine whether, in similar circumstances, the expenditure, is a capital expenditure or a revenue expenditure is adverted to at p. 303 of the judgment. As pointed ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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