https://www.taxtmi.com/caselaws?id=26390 Lease rent paid after statutory vesting was held not to be an allowable deduction under the Agricultural Income-tax Act because, in substance, it represented consideration for acquiring the landowner's right, title and interest and was capital in nature. Reading the Kerala Land Reforms Act together, the Court stated that after 1 April 1970 no legal rent was payable to the erstwhile landowner; the statutory scheme redirected such amounts toward purchase price and compensation. The Court also rejected the claim that the payment could be deducted as bona fide expenditure on commercial expediency, since a capital outlay does not become revenue expenditure merely because it was made for business convenience. en-us Wed, 11 Sep 1985 00:00:00 +0530 Thu, 04 Feb 2010 16:30:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26390 Lease rent paid after statutory vesting was held not to be an allowable deduction under the Agricultural Income-tax Act because, in substance, it represented consideration for acquiring the landowner's right, title and interest and was capital in nature. Reading the Kerala Land Reforms Act together, the Court stated that after 1 April 1970 no legal rent was payable to the erstwhile landowner; the statutory scheme redirected such amounts toward purchase price and compensation. The Court also rejected the claim that the payment could be deducted as bona fide expenditure on commercial expediency, since a capital outlay does not become revenue expenditure merely because it was made for business convenience. Case-Laws Income Tax Wed, 11 Sep 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26390