https://www.taxtmi.com/caselaws?id=6526 Compensation received for damage to plant and machinery was capital in nature because it related to capital assets and not trading operations; section 41(2) did not apply where the assets were merely damaged and repaired, so the receipt was not taxable as revenue income. Payments for technical know-how, including related foreign tour expenditure, were revenue expenditure because they were incurred to improve the existing business without creating a new asset or enduring advantage, and were deductible under section 37(1). Guest house maintenance expenditure was not disallowed on a new ground raised later, and the reference issue on entertainment expenditure was not sustained. en-us Thu, 19 Jan 1978 00:00:00 +0530 Fri, 05 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6526 Compensation received for damage to plant and machinery was capital in nature because it related to capital assets and not trading operations; section 41(2) did not apply where the assets were merely damaged and repaired, so the receipt was not taxable as revenue income. Payments for technical know-how, including related foreign tour expenditure, were revenue expenditure because they were incurred to improve the existing business without creating a new asset or enduring advantage, and were deductible under section 37(1). Guest house maintenance expenditure was not disallowed on a new ground raised later, and the reference issue on entertainment expenditure was not sustained. Case-Laws Income Tax Thu, 19 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6526