https://www.taxtmi.com/caselaws?id=5308 SC held that the payment made by the assessee to the Railways for shifting the railway station, yard and buildings was revenue expenditure allowable as deduction under the Income-tax Act, 1961. The assessee already possessed mining rights under the lease; the payment did not acquire a new capital asset or source of income but merely removed an obstruction to the profitable conduct of existing mining operations. The resulting benefit was not of an enduring capital nature in the commercial sense. SC found the HC erred in treating the expenditure as capital, allowed the assessee's appeal, set aside the HC judgment, and restored the Tribunal's order allowing the deduction. en-us Tue, 23 Oct 1990 00:00:00 +0530 Fri, 05 Dec 2025 15:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5308 SC held that the payment made by the assessee to the Railways for shifting the railway station, yard and buildings was revenue expenditure allowable as deduction under the Income-tax Act, 1961. The assessee already possessed mining rights under the lease; the payment did not acquire a new capital asset or source of income but merely removed an obstruction to the profitable conduct of existing mining operations. The resulting benefit was not of an enduring capital nature in the commercial sense. SC found the HC erred in treating the expenditure as capital, allowed the assessee's appeal, set aside the HC judgment, and restored the Tribunal's order allowing the deduction. Case-Laws Income Tax Tue, 23 Oct 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5308