https://www.taxtmi.com/caselaws?id=26901 The court determined that the payment made by the assessee company to its Swiss collaborator for access to technical information necessary for manufacturing was classified as revenue expenditure, not capital expenditure. The court emphasized that the payment was for obtaining information and not for acquiring an enduring asset. The agreement was seen as a collaboration where the Swiss party provided know-how for a limited period, leading to the conclusion that the payment was for granting manufacturing rights. Consequently, the amount paid was considered revenue expenditure, and the parties were left to bear their own costs. en-us Tue, 28 May 1985 00:00:00 +0530 Tue, 09 Feb 2010 12:08:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26901 The court determined that the payment made by the assessee company to its Swiss collaborator for access to technical information necessary for manufacturing was classified as revenue expenditure, not capital expenditure. The court emphasized that the payment was for obtaining information and not for acquiring an enduring asset. The agreement was seen as a collaboration where the Swiss party provided know-how for a limited period, leading to the conclusion that the payment was for granting manufacturing rights. Consequently, the amount paid was considered revenue expenditure, and the parties were left to bear their own costs. Case-Laws Income Tax Tue, 28 May 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26901