https://www.taxtmi.com/caselaws?id=15327 The High Court of Madras ruled in favor of the assessee, determining that the income-tax paid by a non-resident should be considered part of the cost of plant and machinery for depreciation and investment allowance purposes. The court held that the tax payment was a discharge of the foreign collaborator's liability, forming part of the value of the plant and machinery as per the agreement terms. This decision aligned with the treatment of technical know-how as capital assets, allowing for depreciation and development rebate on amounts paid to foreign collaborators. en-us Wed, 18 Nov 1998 00:00:00 +0530 Thu, 30 Jul 2026 14:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15327 The High Court of Madras ruled in favor of the assessee, determining that the income-tax paid by a non-resident should be considered part of the cost of plant and machinery for depreciation and investment allowance purposes. The court held that the tax payment was a discharge of the foreign collaborator's liability, forming part of the value of the plant and machinery as per the agreement terms. This decision aligned with the treatment of technical know-how as capital assets, allowing for depreciation and development rebate on amounts paid to foreign collaborators. Case-Laws Income Tax Wed, 18 Nov 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15327