https://www.taxtmi.com/caselaws?id=3201 The High Court dismissed the appeal, affirming that upfront lease rent charges paid for land and building on lease for setting up a new unit constitute revenue expenditure. The Court emphasized that the commercial perspective and purpose determine the nature of expenditure, regardless of the payment method. It clarified that paying lease rent as a lump sum does not change its classification as revenue expenditure if it would have been considered as such when paid annually. The decision underscores the significance of evaluating expenditures based on business intent and impact. en-us Tue, 05 Jun 2007 00:00:00 +0530 Tue, 20 Sep 2011 18:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3201 The High Court dismissed the appeal, affirming that upfront lease rent charges paid for land and building on lease for setting up a new unit constitute revenue expenditure. The Court emphasized that the commercial perspective and purpose determine the nature of expenditure, regardless of the payment method. It clarified that paying lease rent as a lump sum does not change its classification as revenue expenditure if it would have been considered as such when paid annually. The decision underscores the significance of evaluating expenditures based on business intent and impact. Case-Laws Income Tax Tue, 05 Jun 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3201