https://www.taxtmi.com/caselaws?id=20542 Stamp duty, adjudication fee and registration charges paid for lease deeds executed by the Government in favour of the assessee for plantation lands were held to be revenue expenditure. Applying the pragmatic test, the Court treated the true inquiry as whether the outlay facilitated the business operations or secured an asset or right of permanent character. Because the lease arrangements only enabled the carrying on of the plantation business and formed part of the profit-earning process, they did not create fixed capital, and the long duration of the leases was not ative. The expenditure was therefore allowable as a deduction. en-us Mon, 14 Jun 1993 00:00:00 +0530 Sat, 14 Nov 2009 15:55:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20542 Stamp duty, adjudication fee and registration charges paid for lease deeds executed by the Government in favour of the assessee for plantation lands were held to be revenue expenditure. Applying the pragmatic test, the Court treated the true inquiry as whether the outlay facilitated the business operations or secured an asset or right of permanent character. Because the lease arrangements only enabled the carrying on of the plantation business and formed part of the profit-earning process, they did not create fixed capital, and the long duration of the leases was not ative. The expenditure was therefore allowable as a deduction. Case-Laws Income Tax Mon, 14 Jun 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20542