https://www.taxtmi.com/caselaws?id=6712 Lease payments made to obtain exclusive rights over sand-bearing areas were held to be capital expenditure because the lessee acquired the right to work specified quarries and derive an enduring advantage in the business. The Court distinguished purchases of loose material already available as trading stock, noting that the present arrangement was not a mere acquisition of sand for resale but a lease of mineral areas with authority to remove and dispose of sand. As the payment secured a capital asset or enduring benefit rather than circulating stock-in-trade, it was not allowable as revenue expenditure. en-us Thu, 04 Mar 1965 00:00:00 +0530 Sun, 01 Feb 2009 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6712 Lease payments made to obtain exclusive rights over sand-bearing areas were held to be capital expenditure because the lessee acquired the right to work specified quarries and derive an enduring advantage in the business. The Court distinguished purchases of loose material already available as trading stock, noting that the present arrangement was not a mere acquisition of sand for resale but a lease of mineral areas with authority to remove and dispose of sand. As the payment secured a capital asset or enduring benefit rather than circulating stock-in-trade, it was not allowable as revenue expenditure. Case-Laws Income Tax Thu, 04 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6712