https://www.taxtmi.com/caselaws?id=25143 Payments made to obtain a quarry lease for extracting napa or cuddapah slabs were treated as capital expenditure because the lease conferred an exclusive, enduring right to work the quarry under the statutory mining regime. The decisive test was whether the outlay formed part of the profit-earning process or secured an asset or advantage of enduring character. On the facts, the leasehold right itself was the profit-earning source, and the expenditure was not merely for stock-in-trade. The distinction applicable where mineral is already on the surface did not apply on the facts stated, so the amounts were not allowable as revenue expenditure. en-us Thu, 05 Feb 1987 00:00:00 +0530 Mon, 25 Jan 2010 16:12:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25143 Payments made to obtain a quarry lease for extracting napa or cuddapah slabs were treated as capital expenditure because the lease conferred an exclusive, enduring right to work the quarry under the statutory mining regime. The decisive test was whether the outlay formed part of the profit-earning process or secured an asset or advantage of enduring character. On the facts, the leasehold right itself was the profit-earning source, and the expenditure was not merely for stock-in-trade. The distinction applicable where mineral is already on the surface did not apply on the facts stated, so the amounts were not allowable as revenue expenditure. Case-Laws Income Tax Thu, 05 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25143