https://www.taxtmi.com/caselaws?id=5553 The SC upheld the HC's finding for the Revenue, holding the payments to the foreign concern were capital expenditure rather than revenue. The court found the collaboration created a new business, with the foreign party supplying technical know-how, services in setting up the factory and an enduring advantage allowing continued manufacture after agreement expiry. The court rejected rigid tests like "once-for-all" payment or percentage-based royalty as determinative, applying the "enduring benefit" analysis and concluding the payments amounted to an accretion to capital. Appeals were dismissed without costs. en-us Tue, 11 Feb 1997 00:00:00 +0530 Mon, 13 Oct 2025 19:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5553 The SC upheld the HC's finding for the Revenue, holding the payments to the foreign concern were capital expenditure rather than revenue. The court found the collaboration created a new business, with the foreign party supplying technical know-how, services in setting up the factory and an enduring advantage allowing continued manufacture after agreement expiry. The court rejected rigid tests like "once-for-all" payment or percentage-based royalty as determinative, applying the "enduring benefit" analysis and concluding the payments amounted to an accretion to capital. Appeals were dismissed without costs. Case-Laws Income Tax Tue, 11 Feb 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5553