Dismissing the appeal of the assessee the Court held that ; the membership fee paid by the assessee represented money paid to procure a permanent right in the form of a licence to carry on trade and the expenditure incurred was not revenue but capital in nature.( AY. 1996 -97)
Abhipra Capital Ltd. v. DCIT (2018) 402 ITR 1/ 254 Taxman 19/ 164 DTR 250/ 303 CTR 534 (Delhi) (HC)
S. 37(1) : Business expenditure –Capital or revenue – Membership fee paid to National Stock Exchange for procurement of permanent right in form of licence to carry on trade was held to be capital in nature .