https://www.taxtmi.com/caselaws?id=9317 Payment for additional loom hours was treated as capital expenditure because the acquisition expanded the assessee's profit-making apparatus rather than meeting day-to-day trading outgoings. The Calcutta HC analysis relied on the commercial character of loom hours in the trade and on the earlier Maheshwari Devi Jute Mills principle that such hours formed part of the mills' capital structure. Short duration of the benefit did not change the nature of the asset acquired. The amount was therefore not deductible as revenue expenditure under the Indian Income-tax Act, 1922. en-us Fri, 03 Aug 1973 00:00:00 +0530 Sun, 21 Jun 2009 18:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9317 Payment for additional loom hours was treated as capital expenditure because the acquisition expanded the assessee's profit-making apparatus rather than meeting day-to-day trading outgoings. The Calcutta HC analysis relied on the commercial character of loom hours in the trade and on the earlier Maheshwari Devi Jute Mills principle that such hours formed part of the mills' capital structure. Short duration of the benefit did not change the nature of the asset acquired. The amount was therefore not deductible as revenue expenditure under the Indian Income-tax Act, 1922. Case-Laws Income Tax Fri, 03 Aug 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9317