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PETITIONER: PINGLE INDUSTRIES LTD., SECUNDERABAD
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX, HYDERABAD.
DATE OF JUDGMENT: 26/04/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. DAS, S.K. HIDAYATULLAH, M.
CITATION: 1960 AIR 997 1960 SCR (3) 669 CITATOR INFO : R 1963 SC 683 (7,21,26,30) R 1965 SC 360 (9) D 1966 SC 798 (10,12) RF 1968 SC 678 (2,4) R 1969 SC 893 (9) R 1971 SC1454 (9) RF 1973 SC 637 (7)
ACT: Income Tax-Business Expenditure-Right to extract stones from quarries-Character of expenditure-Test, whether revenue or capital in nature-Hyderabad Income Tax Act (Hyderabad VIII Of 1357 F),S. 12(2)(xv)-Indian Income Tax Act, S. 10(2)(XV).
HEADNOTE: Under a quolnama the assessee company was granted exclusive rights in the nature of a monopoly to extract Shahabad Flag Stones without limit to quantity or measurement from quarries situated in six villages for a period of 12 years on annual payment of Rs. 28,000 but not to manufacture cement. The stones had to be extracted methodically and skilfully before they could be dressed and sold. The assessee company paid an initial sum of Rs. 96,000 as security and the balance of Rs. 20,000 was payable each year in monthly instalments of Rs. 1,666-10-8 each. The payments were to be made even if no stones were extracted or could ...