https://www.taxtmi.com/caselaws?id=277501 Payments made for the exclusive forest rights to collect harra nut and lac were treated as capital expenditure because the agreements conferred a profit a prendre and a right in immovable property, not a mere purchase of raw material for an existing business. Applying the tests of acquisition of an asset and enduring advantage, the court held that the payments acquired the source of profit itself. Authorities on land, timber, and similar forest or mineral rights were applied, while cases treating such payments as raw material cost were distinguished. The amounts were therefore not deductible under Section 10(2)(xii) of the Indian Income-tax Act, 1922. en-us Fri, 08 Dec 1944 00:00:00 +0630 Wed, 05 Dec 2018 18:26:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277501 Payments made for the exclusive forest rights to collect harra nut and lac were treated as capital expenditure because the agreements conferred a profit a prendre and a right in immovable property, not a mere purchase of raw material for an existing business. Applying the tests of acquisition of an asset and enduring advantage, the court held that the payments acquired the source of profit itself. Authorities on land, timber, and similar forest or mineral rights were applied, while cases treating such payments as raw material cost were distinguished. The amounts were therefore not deductible under Section 10(2)(xii) of the Indian Income-tax Act, 1922. Case-Laws Income Tax Fri, 08 Dec 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=277501