https://www.taxtmi.com/caselaws?id=5761 Whether an upfront "deposit" paid under a lease was deductible as revenue expenditure in computing business profits. The SC held that, on the lease terms, the amount represented rent for the leased land for the entire 15-year term, paid in advance as a non-interest-bearing deposit securing performance, adjustable against monthly rent. Applying the principle in prior SC authority treating advance rent/premium for enduring lease rights as capital in nature, the payment was not allowable as a deduction. The appeals were dismissed. en-us Tue, 07 Sep 1999 00:00:00 +0530 Fri, 19 Dec 2025 23:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5761 Whether an upfront "deposit" paid under a lease was deductible as revenue expenditure in computing business profits. The SC held that, on the lease terms, the amount represented rent for the leased land for the entire 15-year term, paid in advance as a non-interest-bearing deposit securing performance, adjustable against monthly rent. Applying the principle in prior SC authority treating advance rent/premium for enduring lease rights as capital in nature, the payment was not allowable as a deduction. The appeals were dismissed. Case-Laws Income Tax Tue, 07 Sep 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5761