https://www.taxtmi.com/caselaws?id=37376 Consideration paid for acquiring technical know-how and data used to set up and operate a manufacturing plant confers an enduring proprietary advantage and therefore constitutes capital expenditure. The payment was for acquisition of a right of enduring nature, not a transient licence conditioned on continued payments, so the expenditure must be capitalised as acquisition of an intangible capital asset rather than treated as revenue expenditure. The clarification distinguishes acquisition of ownership or enduring rights in know-how from mere user-based royalty arrangements, with the operative effect that such payments are capital in nature. en-us Wed, 12 Jul 1978 00:00:00 +0530 Wed, 28 Jan 2026 10:13:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37376 Consideration paid for acquiring technical know-how and data used to set up and operate a manufacturing plant confers an enduring proprietary advantage and therefore constitutes capital expenditure. The payment was for acquisition of a right of enduring nature, not a transient licence conditioned on continued payments, so the expenditure must be capitalised as acquisition of an intangible capital asset rather than treated as revenue expenditure. The clarification distinguishes acquisition of ownership or enduring rights in know-how from mere user-based royalty arrangements, with the operative effect that such payments are capital in nature. Case-Laws Income Tax Wed, 12 Jul 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37376