https://www.taxtmi.com/caselaws?id=7349 Expenditure incurred to send technicians abroad for practical training in improved manufacturing methods was treated as revenue outlay because it did not create a new asset, add a new line of business, involve new machinery, or amount to substantial replacement of equipment. The training was directed at improving the efficiency of an existing manufacturing process and enabling the business to be carried on more profitably through better use of methods already in operation. Applying the capital-revenue distinction, the decisive factor was that the spending related to the profitable use of the existing business apparatus rather than acquisition of an enduring capital advantage. The expenditure was therefore deductible as revenue expenditure. en-us Thu, 03 Oct 1968 00:00:00 +0530 Wed, 18 Feb 2009 09:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7349 Expenditure incurred to send technicians abroad for practical training in improved manufacturing methods was treated as revenue outlay because it did not create a new asset, add a new line of business, involve new machinery, or amount to substantial replacement of equipment. The training was directed at improving the efficiency of an existing manufacturing process and enabling the business to be carried on more profitably through better use of methods already in operation. Applying the capital-revenue distinction, the decisive factor was that the spending related to the profitable use of the existing business apparatus rather than acquisition of an enduring capital advantage. The expenditure was therefore deductible as revenue expenditure. Case-Laws Income Tax Thu, 03 Oct 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7349