https://www.taxtmi.com/caselaws?id=215099 The High Court ruled in favor of the assessee, holding that the technical consultancy fees were revenue expenditure and not subject to Section 35AB of the Income Tax Act, 1961. The court emphasized that the expenditure aimed at improving existing efficiency without resulting in enduring benefits, thus classifying it as revenue in nature. The court distinguished between capital and revenue expenditure, affirming that Section 35AB applies solely to capital expenses, allowing revenue expenditure for technical know-how under Section 37(1). The tax appeal was dismissed in favor of the assessee against the revenue. en-us Tue, 10 Jul 2012 00:00:00 +0530 Tue, 24 Jul 2012 11:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215099 The High Court ruled in favor of the assessee, holding that the technical consultancy fees were revenue expenditure and not subject to Section 35AB of the Income Tax Act, 1961. The court emphasized that the expenditure aimed at improving existing efficiency without resulting in enduring benefits, thus classifying it as revenue in nature. The court distinguished between capital and revenue expenditure, affirming that Section 35AB applies solely to capital expenses, allowing revenue expenditure for technical know-how under Section 37(1). The tax appeal was dismissed in favor of the assessee against the revenue. Case-Laws Income Tax Tue, 10 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215099