https://www.taxtmi.com/caselaws?id=273463 Payments under brick-kiln leases for rent, compensation for earth and allied rights were held to be capital expenditure because the arrangement secured rights over land for carrying on the business and extracting earth for use in that business. The compensation for earth was treated as analogous to royalty in a mining lease, and the transaction was more than a mere purchase of raw material. Limits on depth of extraction and the split between rent and compensation did not change the essential character of the payments. Accordingly, the expenditure was not allowable as revenue deduction under the Income-tax Act, 1922. en-us Tue, 19 Sep 1944 00:00:00 +0630 Wed, 27 Jun 2018 18:16:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273463 Payments under brick-kiln leases for rent, compensation for earth and allied rights were held to be capital expenditure because the arrangement secured rights over land for carrying on the business and extracting earth for use in that business. The compensation for earth was treated as analogous to royalty in a mining lease, and the transaction was more than a mere purchase of raw material. Limits on depth of extraction and the split between rent and compensation did not change the essential character of the payments. Accordingly, the expenditure was not allowable as revenue deduction under the Income-tax Act, 1922. Case-Laws Income Tax Tue, 19 Sep 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=273463