https://www.taxtmi.com/caselaws?id=37803 Expenditure on earth cutting in an open-cast mine was held to be revenue expenditure because it was incurred in the course of working an already proved mine and formed an intrinsic part of the mining operation. The removal of over-burden to reach ore did not amount to exploring, proving, extending, or substantially replacing the business, and it created no new asset or enduring capital advantage. Viewed from the business standpoint, the outlay was part of the profit-earning process rather than an initial capital accretion, and its quantum did not change that character. It was therefore deductible as a business expense. en-us Tue, 04 Oct 1977 00:00:00 +0530 Thu, 01 Apr 2010 11:56:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37803 Expenditure on earth cutting in an open-cast mine was held to be revenue expenditure because it was incurred in the course of working an already proved mine and formed an intrinsic part of the mining operation. The removal of over-burden to reach ore did not amount to exploring, proving, extending, or substantially replacing the business, and it created no new asset or enduring capital advantage. Viewed from the business standpoint, the outlay was part of the profit-earning process rather than an initial capital accretion, and its quantum did not change that character. It was therefore deductible as a business expense. Case-Laws Income Tax Tue, 04 Oct 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37803