https://www.taxtmi.com/caselaws?id=37657 The High Court held that 25% of the royalty paid by the assessee to an English company for technical assistance in setting up a factory constituted capital expenditure, not allowable as revenue expenditure for the assessment years 1967-68 and 1968-69. The court emphasized that the nature of the benefit acquired and the terms of the agreement determine whether an expenditure is capital or revenue. The court ruled in favor of the revenue department, affirming the Tribunal's decision that the payment included an element of capital expenditure. en-us Mon, 20 Nov 1978 00:00:00 +0530 Wed, 31 Mar 2010 12:04:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37657 The High Court held that 25% of the royalty paid by the assessee to an English company for technical assistance in setting up a factory constituted capital expenditure, not allowable as revenue expenditure for the assessment years 1967-68 and 1968-69. The court emphasized that the nature of the benefit acquired and the terms of the agreement determine whether an expenditure is capital or revenue. The court ruled in favor of the revenue department, affirming the Tribunal's decision that the payment included an element of capital expenditure. Case-Laws Income Tax Mon, 20 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37657