https://www.taxtmi.com/caselaws?id=8317 Contributions made to construct roads for transporting sugarcane were treated as capital expenditure because they secured an enduring business advantage by improving access to the factory and the assessee's overall earning capacity. The payment was not part of the ordinary profit-earning process, and no deduction was allowable under section 10(1) or section 10(2)(xv) of the Income-tax Act, 1922. The principle applied was that outlay yielding an enduring benefit, even without acquisition of a tangible asset, is capital in nature and cannot be deducted as business expenditure. en-us Wed, 28 Jul 1971 00:00:00 +0530 Thu, 09 Apr 2009 17:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8317 Contributions made to construct roads for transporting sugarcane were treated as capital expenditure because they secured an enduring business advantage by improving access to the factory and the assessee's overall earning capacity. The payment was not part of the ordinary profit-earning process, and no deduction was allowable under section 10(1) or section 10(2)(xv) of the Income-tax Act, 1922. The principle applied was that outlay yielding an enduring benefit, even without acquisition of a tangible asset, is capital in nature and cannot be deducted as business expenditure. Case-Laws Income Tax Wed, 28 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8317