https://www.taxtmi.com/caselaws?id=416831 Compensatory payments made to remove business iments were treated as revenue expenditure rather than disallowable outgoings. Railway charges paid for wagon overloading were held allowable under section 37(1) because they were compensatory in nature and the assessee could not weigh at the originating station due to the absence of a weighing bridge. Net present value paid to the forest department for use of forest land for mining was also treated as revenue expenditure, as it merely facilitated an existing mining right without creating any fresh right or enduring asset. The additions and disallowances in dispute were not sustained. en-us Tue, 04 Jan 2022 00:00:00 +0530 Sat, 08 Jan 2022 09:49:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=416831 Compensatory payments made to remove business iments were treated as revenue expenditure rather than disallowable outgoings. Railway charges paid for wagon overloading were held allowable under section 37(1) because they were compensatory in nature and the assessee could not weigh at the originating station due to the absence of a weighing bridge. Net present value paid to the forest department for use of forest land for mining was also treated as revenue expenditure, as it merely facilitated an existing mining right without creating any fresh right or enduring asset. The additions and disallowances in dispute were not sustained. Case-Laws Income Tax Tue, 04 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=416831