1997 (4) TMI 14 - SUPREME COURT

Whether the amount paid by the respondent-assessee to the foreign collaborator for technical know-how is a capital expenditure or a revenue expenditure - High Court was justified in concluding that the amounts paid to the collaborator is only a "licence fee" and not the price for acquisition of a "capital asset". It was concluded that the entire payment constitutes revenue expenditure and the questions were answered in favour of the assessee