https://www.taxtmi.com/caselaws?id=186463 Payments made under mining agreements to secure rights to win mica were held to be capital expenditure, not revenue expenditure deductible under Section 10(2) of the Indian Income-tax Act. The decisive test was the true nature of the outlay: expenditure incurred once and for all to acquire an asset or an enduring advantage for the business is capital in character. Because the agreements gave the assessee mining rights in specified areas for several years, they formed part of the profit-making structure rather than a mere purchase of raw material. The amounts were therefore not allowable as a business deduction. en-us Fri, 03 Sep 1948 00:00:00 +0530 Mon, 19 Sep 2016 17:32:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186463 Payments made under mining agreements to secure rights to win mica were held to be capital expenditure, not revenue expenditure deductible under Section 10(2) of the Indian Income-tax Act. The decisive test was the true nature of the outlay: expenditure incurred once and for all to acquire an asset or an enduring advantage for the business is capital in character. Because the agreements gave the assessee mining rights in specified areas for several years, they formed part of the profit-making structure rather than a mere purchase of raw material. The amounts were therefore not allowable as a business deduction. Case-Laws Income Tax Fri, 03 Sep 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186463