https://www.taxtmi.com/caselaws?id=49555 Lease money paid under long-term quarry contracts for an exclusive right to win stones from specified land was capital expenditure, not revenue outlay, because it secured a source of supply of enduring benefit. The Court treated the arrangement as acquisition of part of the land and a capital asset, rather than a mere purchase of raw materials as stock-in-trade. The periodic mode of payment did not change the substance of the transaction, and the amount was not rent or royalty in substance. The expenditure was therefore not deductible in computing business income. en-us Tue, 26 Apr 1960 00:00:00 +0530 Fri, 27 Feb 2015 11:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49555 Lease money paid under long-term quarry contracts for an exclusive right to win stones from specified land was capital expenditure, not revenue outlay, because it secured a source of supply of enduring benefit. The Court treated the arrangement as acquisition of part of the land and a capital asset, rather than a mere purchase of raw materials as stock-in-trade. The periodic mode of payment did not change the substance of the transaction, and the amount was not rent or royalty in substance. The expenditure was therefore not deductible in computing business income. Case-Laws Income Tax Tue, 26 Apr 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49555