1998 (2) TMI 8

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..... 35 per month per acre. The land was taken on lease so that it could carry out excavation thereon and recover manganese ore for sale. It claimed that Rs. 10,752 being the yearly rent was allowable as a revenue deduction the same having been incurred in connection with the carrying on of its business of mining. Following the decision of this court in Pingle Industries Ltd. v. CIT [1960] 40 ITR 67,....

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....ty which was paid was allowable as revenue deduction as by making these payments the assessee had acquired a capital asset of enduring benefit. Mrs. Janaki Ramachandran, learned counsel for the appellant, has drawn our attention to another decision of three judges of this court in Gotan Lime Syndicate v. CIT [1966] 59 ITR 718. In that case, the assessee which was carrying on the business of man....

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....se of Pingle Industries Ltd. v. CIT [1960] 40 ITR 67 (SC) is distinguishable because on the facts it was a lump-sum payment in instalments for acquiring a capital asset of enduring benefit to his trade." We have carefully perused the judgments and it appears to us that the facts in the two cases were essentially very similar. It is no doubt true that in Gotan Lime Syndicate's case [1966] 59 ITR....

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....ing on his trade of buying and selling goods. If in such a case, it is submitted, the rent paid to the landlord for the shop is regarded as a revenue expenditure which enables the assessee to carry on its business activities in the said shop, similarly land taken on lease should be regarded as a revenue expenditure because that enables the appellant to carry on its business activity of mining of m....