https://www.taxtmi.com/caselaws?id=6899 Expenditure voluntarily incurred by a lessee to construct additional rooms on leased hotel premises was held to be capital in nature because it created an enduring business advantage during the lease period, with the structures ultimately vesting in the lessor on termination. The source or mode of payment was immaterial; the controlling test was the purpose and advantage obtained from the outlay. As the payment was neither contractual rent nor premium, it was not deductible as rent under section 10(2)(i) or as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. en-us Wed, 16 Nov 1966 00:00:00 +0530 Sat, 07 Feb 2009 08:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6899 Expenditure voluntarily incurred by a lessee to construct additional rooms on leased hotel premises was held to be capital in nature because it created an enduring business advantage during the lease period, with the structures ultimately vesting in the lessor on termination. The source or mode of payment was immaterial; the controlling test was the purpose and advantage obtained from the outlay. As the payment was neither contractual rent nor premium, it was not deductible as rent under section 10(2)(i) or as revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Wed, 16 Nov 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6899