https://www.taxtmi.com/caselaws?id=38120 Technical know-how supplied under a limited collaboration arrangement, with confidentiality restrictions and no transfer of an enduring asset or business apparatus, was treated as revenue expenditure, making the royalty deductible. Foreign tour expenses incurred to finalise the collaboration agreement and deal with connected technical and procurement matters were also treated as revenue expenditure, because they were preliminary costs for securing the arrangement and not expenditure on acquisition of capital assets. The dominant principle stated is that restricted use of technical knowledge, without acquisition of enduring capital advantage, points to revenue rather than capital character. en-us Wed, 16 Nov 1977 00:00:00 +0530 Sat, 03 Apr 2010 12:42:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38120 Technical know-how supplied under a limited collaboration arrangement, with confidentiality restrictions and no transfer of an enduring asset or business apparatus, was treated as revenue expenditure, making the royalty deductible. Foreign tour expenses incurred to finalise the collaboration agreement and deal with connected technical and procurement matters were also treated as revenue expenditure, because they were preliminary costs for securing the arrangement and not expenditure on acquisition of capital assets. The dominant principle stated is that restricted use of technical knowledge, without acquisition of enduring capital advantage, points to revenue rather than capital character. Case-Laws Income Tax Wed, 16 Nov 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38120