COMMISSIONER OF INCOME-TAX, WEST BENGAL-IICALCUTTA vs KALYANJI MAVJI & COMPANY

The Supreme Court upheld the High Court's decision that the expenditure of Rs. 1.6 lakhs incurred by the assessee for renovating a colliery after derequisition was revenue in nature, not capital. The Court clarified that such expenditure was part of the profit-earning process and incidental to the business operations, thus qualifying for deduction under Section 10(2)(xv) of the Indian Income Tax Act, 1922. The appeal by the Revenue was dismissed, affirming the lower courts' findings on the nature of the expenditure.