https://www.taxtmi.com/caselaws?id=184699 Lease-related lump sum payments are characterised by the true substance of the transaction, not the label in the deed. Where the lease confers substantial and continuing rights in land, including rights to erect structures, build roads and wells, cultivate, use for varied purposes, or sublet, the payment forms part of the consideration for long-term leasehold rights. On those facts, the arrangement is capital in nature and not deductible as revenue expenditure as the cost of raw material. en-us Tue, 10 Jul 1962 00:00:00 +0530 Mon, 18 Jul 2016 11:08:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184699 Lease-related lump sum payments are characterised by the true substance of the transaction, not the label in the deed. Where the lease confers substantial and continuing rights in land, including rights to erect structures, build roads and wells, cultivate, use for varied purposes, or sublet, the payment forms part of the consideration for long-term leasehold rights. On those facts, the arrangement is capital in nature and not deductible as revenue expenditure as the cost of raw material. Case-Laws Income Tax Tue, 10 Jul 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184699