https://www.taxtmi.com/caselaws?id=15138 A lump-sum payment made under a lease was treated as capital expenditure where it secured an enduring capital advantage, so it was not deductible as revenue expenditure or as advance rent. The analysis distinguished premium or salami from recurring rent and applied the principle that periodic lease payments are rent, while one-time payments for acquisition of lease rights are capital in nature. The discussion also noted that depreciation depends on beneficial dominion and the right to use the asset, rather than bare legal title, where the transaction confers ownership-type rights. en-us Fri, 07 Jan 2000 00:00:00 +0530 Mon, 03 Aug 2009 12:41:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15138 A lump-sum payment made under a lease was treated as capital expenditure where it secured an enduring capital advantage, so it was not deductible as revenue expenditure or as advance rent. The analysis distinguished premium or salami from recurring rent and applied the principle that periodic lease payments are rent, while one-time payments for acquisition of lease rights are capital in nature. The discussion also noted that depreciation depends on beneficial dominion and the right to use the asset, rather than bare legal title, where the transaction confers ownership-type rights. Case-Laws Income Tax Fri, 07 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15138