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Payment of one-time fee to continue mining business: capital expenditure or revenue?
Case Law Details
- Case Name
- Principal commissioner of income tax Vs rungta mines ltd. (Calcutta High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Calcutta High Court
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PCIT Vs Rungta Mines Ltd (Calcutta High Court)
The legal issue that the Revenue seeks to assert is as to whether the payment of the net present value by an assessee engaged in mining for use of forest land for mining purpose would be a capital expenditure or a revenue expenditure.
It is not in dispute that pursuant to a lease for mining manganese ore in village Konthar-Koira in the district of Sundergarh, Odisha, the assessee has been carrying on mining business in the area. Pursuant to a Supreme Court order in a matter pertaining to forest lands, it was made mandatory for al...
