https://www.taxtmi.com/caselaws?id=49464 Payment to secure an exclusive, non-transferable right to fish for and gather conch shells was examined under the capital-versus-revenue tests: whether the outlay formed part of ordinary profit-earning process or created a permanent proprietary advantage. Applying precedent distinguishing payments for raw material supply from long-term reserved sources, the right granted an enduring commercial advantage by converting the business mode and reserving future supply, while the shells were not the lessee's property until taken. On these facts the payment was held capital in nature and not deductible under the relevant income-tax provision, result against the assessee. en-us Thu, 23 Nov 1961 00:00:00 +0530 Thu, 28 Aug 2014 21:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49464 Payment to secure an exclusive, non-transferable right to fish for and gather conch shells was examined under the capital-versus-revenue tests: whether the outlay formed part of ordinary profit-earning process or created a permanent proprietary advantage. Applying precedent distinguishing payments for raw material supply from long-term reserved sources, the right granted an enduring commercial advantage by converting the business mode and reserving future supply, while the shells were not the lessee's property until taken. On these facts the payment was held capital in nature and not deductible under the relevant income-tax provision, result against the assessee. Case-Laws Income Tax Thu, 23 Nov 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49464