https://www.taxtmi.com/caselaws?id=179350 A payment quantified as 10 per cent of net profits was treated as expenditure, not a distribution of business profits, because it formed part of the consideration for the right to work the mineral deposits and was merely measured by profits. It was held to be revenue expenditure, since it was incurred to obtain mineral sand used as trading stock in the ordinary course of business and was laid out wholly for business purposes. No estoppel prevented the assessee from claiming deduction, as the description of the liability did not alter its true legal character for income-tax purposes. en-us Thu, 26 Aug 1954 00:00:00 +0530 Fri, 26 Feb 2016 18:05:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179350 A payment quantified as 10 per cent of net profits was treated as expenditure, not a distribution of business profits, because it formed part of the consideration for the right to work the mineral deposits and was merely measured by profits. It was held to be revenue expenditure, since it was incurred to obtain mineral sand used as trading stock in the ordinary course of business and was laid out wholly for business purposes. No estoppel prevented the assessee from claiming deduction, as the description of the liability did not alter its true legal character for income-tax purposes. Case-Laws Income Tax Thu, 26 Aug 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179350