https://www.taxtmi.com/caselaws?id=196461 The court determined that the money paid for acquiring salt-bearing lands on short-term leases was a revenue expenditure, not capital expenditure. The expenditure was held to be deductible under Section 10(2)(ix) of the Income Tax Act, 1922, as it was necessary for earning profits and did not result in the creation of a fixed capital asset. The court emphasized the short-term nature of the leases, their essential role in the manufacturing process, and their depletion within a short period. The decision favored treating the expenditure as a running cost essential for business operations rather than a capital investment. en-us Thu, 08 Feb 1945 00:00:00 +0630 Fri, 01 Dec 2017 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=196461 The court determined that the money paid for acquiring salt-bearing lands on short-term leases was a revenue expenditure, not capital expenditure. The expenditure was held to be deductible under Section 10(2)(ix) of the Income Tax Act, 1922, as it was necessary for earning profits and did not result in the creation of a fixed capital asset. The court emphasized the short-term nature of the leases, their essential role in the manufacturing process, and their depletion within a short period. The decision favored treating the expenditure as a running cost essential for business operations rather than a capital investment. Case-Laws Income Tax Thu, 08 Feb 1945 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=196461