BIKANER GYPSUMS LTD. vs COMMISSIONER OF INCOME TAX, RAJASTHAN

The Supreme Court examined the nature of the Rs.3 lakhs payment made by the assessee for shifting railway infrastructure under the Income Tax Act, 1961, specifically Section 10(2)(xv) and Section 37(1). The Court held that the payment constituted capital expenditure as it resulted in the acquisition of a new asset of enduring nature, thus overruling the Tribunal's classification of it as revenue expenditure. Consequently, the High Court's decision was upheld, affirming that such payments cannot be deducted as revenue expenses.