THE COMMISSIONER OF INCOME-TAX vs THE MYSORE SUGAR CO., LTD.

The Supreme Court ruled that the waiver of advances made by the assessee company to sugarcane growers, due to drought, constituted a revenue expenditure under Section 10(2)(xi) and Section 10(2)(xv) of the Indian Income-Tax Act, 1922. The Court clarified that such expenditures should be considered as business expenses rather than capital losses, emphasizing that deductions must reflect outgoings reasonably attributable to business operations. The High Court's decision to allow the deduction was upheld, affirming that the expenditure was incurred wholly and exclusively for the purpose of the business.