https://www.taxtmi.com/caselaws?id=168549 Expenditure incurred under short-term contracts to obtain tendu leaves for bidi manufacture was revenue in nature because the contracts conveyed only a right to collect and remove raw material, without any interest in land, trees or plants. The outlay was directed to acquiring stock-in-trade for the business rather than an enduring asset or capital structure, so it was deductible in computing business profits. Distinguishing cases involving mines, quarries and standing timber, the Privy Council held that the business sense of capital expenditure did not extend to the cost of procuring consumable material in this way. en-us Thu, 28 Jul 1949 00:00:00 +0530 Wed, 11 Mar 2015 17:05:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168549 Expenditure incurred under short-term contracts to obtain tendu leaves for bidi manufacture was revenue in nature because the contracts conveyed only a right to collect and remove raw material, without any interest in land, trees or plants. The outlay was directed to acquiring stock-in-trade for the business rather than an enduring asset or capital structure, so it was deductible in computing business profits. Distinguishing cases involving mines, quarries and standing timber, the Privy Council held that the business sense of capital expenditure did not extend to the cost of procuring consumable material in this way. Case-Laws Income Tax Thu, 28 Jul 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168549