https://www.taxtmi.com/caselaws?id=168706 Payments made to obtain earth for immediate use in brick manufacture under short-term arrangements were treated as revenue expenditure because they formed part of trading stock and circulating capital, with no enduring asset or permanent source of supply created. Payments made to secure long-term leases of land for earth extraction were treated as capital expenditure because they acquired land rights of a lasting character and an enduring business advantage. The distinction turned on whether the outlay bought raw material for current consumption or acquired a capital asset for the business; only the former was deductible. en-us Fri, 18 Oct 1946 00:00:00 +0530 Mon, 23 Mar 2015 17:42:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168706 Payments made to obtain earth for immediate use in brick manufacture under short-term arrangements were treated as revenue expenditure because they formed part of trading stock and circulating capital, with no enduring asset or permanent source of supply created. Payments made to secure long-term leases of land for earth extraction were treated as capital expenditure because they acquired land rights of a lasting character and an enduring business advantage. The distinction turned on whether the outlay bought raw material for current consumption or acquired a capital asset for the business; only the former was deductible. Case-Laws Income Tax Fri, 18 Oct 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168706