Payment for technical know-how- Capital or revenue expenditure?

Advocate Akhilesh Kumar Sah The issue that a particular expenditure incurred by assessee is a capital expenditure or a revenue one has remained controversial. The facts & circumstances of each case differ. However, the decisions of Hon’ble Supreme Court of India in this respect guide in resolving the issue. It is between settled that the aim and object of the expenditure would determine the character of the expenditure whether it is a capital expenditure or a revenue expenditure. If an expenditure is incurred for acquiring or bringing into existence an asset or advantage for the enduring...