1996 (9) TMI 49 - HC - Income Tax

Capital Asset, Carrying On Business, Expenditure Incurred, Mining Lease, Revenue Expenditure, Stamp Duty

Summary

The High Court of Andhra Pradesh ruled that stamp duty for renewal of a mining lease is allowable as revenue expenditure, not capital expenditure. The expenditure was necessary for the business and not for acquiring a new asset. A circular supported this decision. The judgment favored the assessee against the Revenue.