EXPENSES MUST BE INCURRED IN THE PRODUCTION OF INCOME- SECTION 15 INCOME TAX ACT CAP 470 LAWS OF KENYA

"the proper test to apply is this; was the expenditure incurred in order to meet a continuing business demand, in which case it should be treated as an ordinary business expense and an admissible deduction or was it an expenditure incurred once and for all in which case it -should be treated as a capital outlay”.