https://www.taxtmi.com/caselaws?id=178051 An outlay incurred to obtain crude saltpetre deposits for an existing manufacturing business was treated as revenue expenditure, because it was connected with securing raw material for production and did not create a capital asset or enduring advantage. The commercial substance of the arrangement, rather than the label of a lease or its duration, was decisive. Applying the earlier Full Bench principle on similar saltpetre transactions, the expenditure was held to form part of the cost of production and was allowable as a deduction under Section 10(2)(xii) of the Income-tax Act, 1922. en-us Tue, 02 Oct 1945 00:00:00 +0630 Wed, 27 Jan 2016 16:35:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178051 An outlay incurred to obtain crude saltpetre deposits for an existing manufacturing business was treated as revenue expenditure, because it was connected with securing raw material for production and did not create a capital asset or enduring advantage. The commercial substance of the arrangement, rather than the label of a lease or its duration, was decisive. Applying the earlier Full Bench principle on similar saltpetre transactions, the expenditure was held to form part of the cost of production and was allowable as a deduction under Section 10(2)(xii) of the Income-tax Act, 1922. Case-Laws Income Tax Tue, 02 Oct 1945 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=178051