COMMISSIONER OF INCOME TAX, BOMBAY vs FINLAY MILLS LTD.

The Supreme Court held that the expenditure incurred by a textile company for registering its trade marks for the first time, which were not in use prior to 25th February 1937, qualifies as revenue expenditure under Section 10(2)(xv) of the Indian Income-tax Act, 1922. The Court affirmed that such registration does not constitute capital expenditure, as it merely provides an incidental facility to the owner without adding value to the trade mark itself. The judgment of the Bombay High Court was upheld, approving the precedent set in Commissioner of Income-tax, Bombay v. The Century Spinning and Weaving and Manufacturing Co. Ltd.