https://www.taxtmi.com/caselaws?id=6929 Technical know-how, drawings and designs acquired under a collaboration agreement to manufacture new types of machine tools were treated as capital expenditure because they created a valuable intangible asset and enabled a new line of production. The expenditure was directed to bringing into existence an enduring advantage, not merely meeting the day-to-day needs of an existing business, so it was not deductible as revenue outlay. The authority cited on restricted and short-term use of technical knowledge was distinguished on the facts. en-us Wed, 05 Oct 1966 00:00:00 +0530 Sat, 07 Feb 2009 10:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6929 Technical know-how, drawings and designs acquired under a collaboration agreement to manufacture new types of machine tools were treated as capital expenditure because they created a valuable intangible asset and enabled a new line of production. The expenditure was directed to bringing into existence an enduring advantage, not merely meeting the day-to-day needs of an existing business, so it was not deductible as revenue outlay. The authority cited on restricted and short-term use of technical knowledge was distinguished on the facts. Case-Laws Income Tax Wed, 05 Oct 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6929