Capital Expenditure

Capital expenditure Agreement with ruler of Native State for monopoly rights, tax concessions and immunity from labour and industrial laws for a term of years Percentage of annual profits paid to ruler under agreement Capital expenditure-Non resident Income Receipt by cheque Remand by appellate Tribunal to provide opportunity to let in evidence regarding mode of sending cheques and request of assessee

Whether proper Income tax Act, 1922, Ss. 4(1) (a), 10 (xv),& 33.

Capital Expenditure?"Capital expenditure" for purposes of Income?tax Act (XI of 1922) does not necessarily have the sense of "capital" as used in Business Profits Tax Act (XXI of 1947). Vallambrose Rubber Company case 5 T C 529 ; British Insulated and Halsby Cables Limited case 1926 A C 205 ; City of London Contract Corporation Limited case 2 T C 239 ; Tata Hydro?Electric Agencies case 64 I A 215 ; Golden Horse Shoe Limited case (1934) 1 K B 548 ; Gas Lighting Improvement Company case 1923 A C 723 and Assam?Bengal Cement Company Limited case A I R 1953 Cal. 368 rel.

Capital expenditure" for purposes of Income-tax Act (XI of 1922) does not necessarily have the sense of "capital" as used in Business Profits Tax Act (XXI of 1947).