https://www.taxtmi.com/caselaws?id=20898 The High Court determined that the payment made by the assessee to a foreign company for technical assistance and supply of drawings constituted revenue expenditure for income tax assessment purposes. The Court analyzed the collaboration agreement, nature of expenditure, and benefit derived, concluding that the payment aimed at enhancing business efficiency and profitability, rather than setting up a new industry. As the services provided were supplemental to the existing business and did not result in acquiring new assets, the expenditure was deemed revenue in nature. The ruling favored the assessee, with no costs awarded to the Revenue. en-us Wed, 27 Jan 1993 00:00:00 +0530 Tue, 17 Nov 2009 18:33:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20898 The High Court determined that the payment made by the assessee to a foreign company for technical assistance and supply of drawings constituted revenue expenditure for income tax assessment purposes. The Court analyzed the collaboration agreement, nature of expenditure, and benefit derived, concluding that the payment aimed at enhancing business efficiency and profitability, rather than setting up a new industry. As the services provided were supplemental to the existing business and did not result in acquiring new assets, the expenditure was deemed revenue in nature. The ruling favored the assessee, with no costs awarded to the Revenue. Case-Laws Income Tax Wed, 27 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20898