https://www.taxtmi.com/caselaws?id=28621 A contribution paid under a collaboration agreement towards a foreign collaborator's research and development costs was treated as revenue expenditure where the payment was linked to the assessee's manufacturing business and was not made for any technical information, licence, patent or research result. The payment was directed only to the collaborator's research establishment abroad and did not secure any capital asset or enduring business advantage for the assessee. On that basis, the amount could not be split into capital and revenue components merely because the research facility itself involved capital elements, and no disallowance as capital expenditure was warranted. en-us Wed, 17 Jun 1981 00:00:00 +0530 Wed, 24 Feb 2010 13:59:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28621 A contribution paid under a collaboration agreement towards a foreign collaborator's research and development costs was treated as revenue expenditure where the payment was linked to the assessee's manufacturing business and was not made for any technical information, licence, patent or research result. The payment was directed only to the collaborator's research establishment abroad and did not secure any capital asset or enduring business advantage for the assessee. On that basis, the amount could not be split into capital and revenue components merely because the research facility itself involved capital elements, and no disallowance as capital expenditure was warranted. Case-Laws Income Tax Wed, 17 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28621