https://www.taxtmi.com/caselaws?id=27020 The High Court held that the development expenditure incurred by M/s. Praga Tools Limited for designing and perfecting models to fulfill manufacturing contracts was revenue expenditure, not capital. The expenditure was solely for executing specific contracts, not for acquiring an enduring asset. Similarly, consultancy fees paid for advice on improving manufacturing processes were also considered revenue expenditure as the advice provided was subject to modifications and not permanent. The Court ruled in favor of the assessee, determining both types of expenditures as revenue expenditures under section 37 of the Income-tax Act, 1961. en-us Tue, 22 Jan 1985 00:00:00 +0530 Wed, 10 Feb 2010 12:20:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27020 The High Court held that the development expenditure incurred by M/s. Praga Tools Limited for designing and perfecting models to fulfill manufacturing contracts was revenue expenditure, not capital. The expenditure was solely for executing specific contracts, not for acquiring an enduring asset. Similarly, consultancy fees paid for advice on improving manufacturing processes were also considered revenue expenditure as the advice provided was subject to modifications and not permanent. The Court ruled in favor of the assessee, determining both types of expenditures as revenue expenditures under section 37 of the Income-tax Act, 1961. Case-Laws Income Tax Tue, 22 Jan 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27020