Mining Lease Rent: Capital vs. Revenue Expenditure Decision Upheld

The Supreme Court held that lease rent paid by a mining lessee for acquiring leasehold right for extracting minerals is a capital expenditure if the entire lease amount is paid at once. If royalty or rent is paid, it is considered a revenue expenditure. The High Court's decision to dismiss the appeal was upheld, and the appeal was consequently dismissed.

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The Supreme Court considered whether lease rent paid by a mining lessee for acquiring leasehold right for extracting minerals is a capital or revenue expenditure. The court held that if royalty or rent is paid, it is a revenue expenditure, but if the entire lease amount is paid at once, it is a capital expenditure. The High Court was right to dismiss the appeal, and the appeal was accordingly dismissed.

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