https://www.taxtmi.com/caselaws?id=5959 A payment made under a distributorship arrangement was treated as revenue expenditure because it formed an integral part of the composite bargain for obtaining technical know-how, use of registered trade marks, and related commercial benefits from the foreign collaborator. Applying the practical and commercial test, the character of the outlay depended on the advantage obtained in substance; here, the amount was part of the price for acquiring business know-how rather than the cost of an independent enduring asset. The deduction was therefore allowable and the disallowance was not justified. en-us Tue, 03 Feb 1987 00:00:00 +0530 Wed, 24 Oct 2018 16:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5959 A payment made under a distributorship arrangement was treated as revenue expenditure because it formed an integral part of the composite bargain for obtaining technical know-how, use of registered trade marks, and related commercial benefits from the foreign collaborator. Applying the practical and commercial test, the character of the outlay depended on the advantage obtained in substance; here, the amount was part of the price for acquiring business know-how rather than the cost of an independent enduring asset. The deduction was therefore allowable and the disallowance was not justified. Case-Laws Income Tax Tue, 03 Feb 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5959