https://www.taxtmi.com/caselaws?id=19907 The High Court of Gujarat ruled in favor of the assessee, a private limited company engaged in manufacturing road making machines, regarding the deductibility of amounts paid to foreign companies for technical know-how. The court held that the payments were allowable as revenue expenditure, emphasizing that the expenditure was for the better conduct and improvement of the existing business, thus classifying it as revenue expenditure. The court also determined that the payments made under contracts with foreign collaborators were revenue deductions. The judgment favored the assessee on both issues, resulting in the disposal of the reference with no order as to costs. en-us Wed, 22 Sep 1993 00:00:00 +0530 Tue, 10 Nov 2009 15:35:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19907 The High Court of Gujarat ruled in favor of the assessee, a private limited company engaged in manufacturing road making machines, regarding the deductibility of amounts paid to foreign companies for technical know-how. The court held that the payments were allowable as revenue expenditure, emphasizing that the expenditure was for the better conduct and improvement of the existing business, thus classifying it as revenue expenditure. The court also determined that the payments made under contracts with foreign collaborators were revenue deductions. The judgment favored the assessee on both issues, resulting in the disposal of the reference with no order as to costs. Case-Laws Income Tax Wed, 22 Sep 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19907