Assessee entered into a lease deed with SIPCOT for allotment of an industrial plot for 99 years long-term lease. As per the lease deed, assessee paid a certain amount towards development charges which included formation of roads, streets, lighting, sanitation, drainage, sewerage, etc. Assessee claimed deduction of said amount as revenue expenditure, which was disallowed. The order of the Assessing Officer is affirmed by the Tribunal. On appeal the Court held that since infrastructural developments including roads, streets, etc., were not owned by assessee and were developed by SIPCOT and assessee did not acquire any right of ownership and payment made no addition to value of assets owned by assessee, but development facilitated running of business of assessee, which was an essential requirement without which business could not be operated, contributions made by assessee were eligible to be treated as a revenue expenditure. Deduction allowable 5% of contribution towards the development charges at the end of each year.  (AY. 2006-07 to 2014-15)