https://www.taxtmi.com/caselaws?id=283243 Compensation paid at the commencement of coal mining to acquire surface land rights for de-pillaring was treated as capital expenditure because it secured an enduring business advantage rather than a recurring cost of operations. The court applied the settled distinction between capital outlay to obtain a material asset or advantage and revenue expenditure incurred in the ordinary course of carrying on the business. As the payment was made outright to obtain the necessary surface rights and was not incidental year-by-year working expense, it fell on the capital side and was not deductible under section 10(2)(xv) of the Income-tax Act, 1922. en-us Tue, 13 Aug 1957 00:00:00 +0530 Sat, 14 Sep 2019 11:31:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283243 Compensation paid at the commencement of coal mining to acquire surface land rights for de-pillaring was treated as capital expenditure because it secured an enduring business advantage rather than a recurring cost of operations. The court applied the settled distinction between capital outlay to obtain a material asset or advantage and revenue expenditure incurred in the ordinary course of carrying on the business. As the payment was made outright to obtain the necessary surface rights and was not incidental year-by-year working expense, it fell on the capital side and was not deductible under section 10(2)(xv) of the Income-tax Act, 1922. Case-Laws Income Tax Tue, 13 Aug 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283243