In CIT v. Rajasthan Spg. & Wvg. Mills Ltd. (2004) 137TAX249 the assessee running a textile mill set up an institutional building to provide training in textile technology and handed over such building to the state government which allotted land for this purpose free of cost. The assessee claimed the building construction expenditure as revenue in each of the year on construction. The revenue alleged that the same is capital in nature. The Rajasthan High Court held that the laying out of the expenditure for bringing into existence a building to be owned by the state and to be run by the State for the benefit of the industry was clearly related to the running of the business of the assessee mire efficiently and smoothly.