Enhanced Leased rental to acquire asset of enduring nature is capital expenditure

JUDGMENT V.K. Jain, J.  M/s Shankar Trading (P) Limited (hereinafter referred to as the assessee) is engaged in the business of Katha and Cutch and had taken on lease, with effect from 01.06.1978, a factory belonging to Mehta Charitable Prajnalay Trust (hereinafter referred to as “the Trust”), which also was engaged in the business of manufacturing of the same products. Shri Bishan Dass and Shri Raj Kumar, two of the trustees of the Trust were also the directors and shareholders of the Assessee Company. 3 out of 5 directors of the assessee company were the sons of two trustees of ...