https://www.taxtmi.com/caselaws?id=179979 Stowing expenditure in coal mining was treated as revenue expenditure because it was incurred as an operational step to make extraction feasible in the relevant year and as part of the profit-earning process. Applying ordinary commercial principles, the court held that the outgoing was dictated by business necessity and expediency and was not directed to bringing into existence an asset or enduring advantage. The incidental fact that stowing may have enabled continued extraction for some years did not change its true character. The expenditure was therefore deductible under section 10(2)(xv) of the Income-tax Act, 1922, in favour of the assessee. en-us Tue, 03 Aug 1965 00:00:00 +0530 Mon, 14 Mar 2016 15:32:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179979 Stowing expenditure in coal mining was treated as revenue expenditure because it was incurred as an operational step to make extraction feasible in the relevant year and as part of the profit-earning process. Applying ordinary commercial principles, the court held that the outgoing was dictated by business necessity and expediency and was not directed to bringing into existence an asset or enduring advantage. The incidental fact that stowing may have enabled continued extraction for some years did not change its true character. The expenditure was therefore deductible under section 10(2)(xv) of the Income-tax Act, 1922, in favour of the assessee. Case-Laws Income Tax Tue, 03 Aug 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179979