https://www.taxtmi.com/caselaws?id=35725 Royalty paid under collaboration agreements for the actual use of technical know-how, data and information was treated as revenue expenditure, not capital expenditure. The payments were made to Japanese collaborators in connection with manufacture of electric components, and the Tribunal found they did not secure an enduring right to manufacture the licensed articles. The prior authority relied on by the Revenue had been reversed by a later Full Bench decision, and that principle supported allowance of the deduction. The expenditure was therefore held deductible as revenue in nature. en-us Thu, 13 Mar 1980 00:00:00 +0530 Tue, 16 Mar 2010 12:56:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35725 Royalty paid under collaboration agreements for the actual use of technical know-how, data and information was treated as revenue expenditure, not capital expenditure. The payments were made to Japanese collaborators in connection with manufacture of electric components, and the Tribunal found they did not secure an enduring right to manufacture the licensed articles. The prior authority relied on by the Revenue had been reversed by a later Full Bench decision, and that principle supported allowance of the deduction. The expenditure was therefore held deductible as revenue in nature. Case-Laws Income Tax Thu, 13 Mar 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35725