https://www.taxtmi.com/caselaws?id=25192 The court held that the expenditure of Rs. 1,15,000 on acquiring technical know-how for manufacturing locomotives was a revenue expense, not capital expenditure. The court distinguished the case from previous precedent, emphasizing the direct connection of the expenditure to the manufacturing process. Relying on the principles in CIT v. Ciba of India Ltd., the court concluded that the expenditure was necessary for manufacturing goods and hence should be treated as revenue expenditure for tax assessment purposes. Consequently, the court rejected the Revenue's argument and denied their application, affirming the nature of the expenditure as revenue. en-us Thu, 25 Sep 1986 00:00:00 +0530 Wed, 27 Jan 2010 11:11:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25192 The court held that the expenditure of Rs. 1,15,000 on acquiring technical know-how for manufacturing locomotives was a revenue expense, not capital expenditure. The court distinguished the case from previous precedent, emphasizing the direct connection of the expenditure to the manufacturing process. Relying on the principles in CIT v. Ciba of India Ltd., the court concluded that the expenditure was necessary for manufacturing goods and hence should be treated as revenue expenditure for tax assessment purposes. Consequently, the court rejected the Revenue's argument and denied their application, affirming the nature of the expenditure as revenue. Case-Laws Income Tax Thu, 25 Sep 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25192