https://www.taxtmi.com/caselaws?id=168780 A payment made to a fellow mining company to keep its mine out of production for 12 months was treated as revenue expenditure rather than capital expenditure. The payment secured only a temporary commercial arrangement for one accounting year, did not acquire a business, fixed asset, long-term contractual advantage, or any structural enlargement of the payer's profit-making apparatus, and was confined to the conduct of trading operations. It was therefore regarded as an operating charge on production and deductible in computing taxable profits. The stated ratio is that a short-term production arrangement wholly incidental to trading and lacking any lasting profit-making asset or structural advantage is revenue expenditure. en-us Wed, 15 Jan 1964 00:00:00 +0530 Thu, 26 Mar 2015 14:42:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168780 A payment made to a fellow mining company to keep its mine out of production for 12 months was treated as revenue expenditure rather than capital expenditure. The payment secured only a temporary commercial arrangement for one accounting year, did not acquire a business, fixed asset, long-term contractual advantage, or any structural enlargement of the payer's profit-making apparatus, and was confined to the conduct of trading operations. It was therefore regarded as an operating charge on production and deductible in computing taxable profits. The stated ratio is that a short-term production arrangement wholly incidental to trading and lacking any lasting profit-making asset or structural advantage is revenue expenditure. Case-Laws Income Tax Wed, 15 Jan 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168780