C.I.T. WEST BENGAL II, CALCUTTA vs COAL SHIPMENT (P) LTD.

The Supreme Court held that payments made to a rival trader to ward off competition do not constitute capital expenditure under Section 10(2)(xv) of the Income-tax Act, 1922, if the advantage gained is not of a lasting nature. The Court emphasized that the duration of the advantage must be assessed based on the specific circumstances of each case, and payments related to actual shipments of coal were deemed revenue expenditures. The appeal was dismissed, affirming the High Court's decision in favor of the assessee.