https://www.taxtmi.com/caselaws?id=78452 The High Court held that the payment of Rs. 63,46,000 for acquiring technical know-how was revenue expenditure, not capital expenditure eligible for depreciation under Section 32 of the Act. The court agreed with the ITAT's decision that the payment was for improving existing products and not for acquiring a new capital asset, citing relevant case law. The High Court emphasized that depreciation under Section 32 applies only to capital expenditures, and since the expenditure was determined to be revenue in nature, it was not eligible for depreciation. The court dismissed the revenue's appeals, affirming the expenditure as allowable revenue expenditure. en-us Fri, 08 Oct 2010 00:00:00 +0530 Thu, 13 Dec 2012 12:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=78452 The High Court held that the payment of Rs. 63,46,000 for acquiring technical know-how was revenue expenditure, not capital expenditure eligible for depreciation under Section 32 of the Act. The court agreed with the ITAT's decision that the payment was for improving existing products and not for acquiring a new capital asset, citing relevant case law. The High Court emphasized that depreciation under Section 32 applies only to capital expenditures, and since the expenditure was determined to be revenue in nature, it was not eligible for depreciation. The court dismissed the revenue's appeals, affirming the expenditure as allowable revenue expenditure. Case-Laws Income Tax Fri, 08 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=78452