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2012 (6) TMI 436 - KARNATAKA HIGH COURTExpenses incurred for imparting technical know-how - whether entire expenditure is allowable instead of one-sixth - assessee had to directly bear the air fare and other travelling and living expenses of each such technician - assessee had to pay Molex, fees as was mutually agreed and as was permissible, per man for each day. The said payment was in addition to the air fare and other travelling living expenses of the technicians to be borne directly by the licensee. - held that:- In the case of imparting this technical know-how, firstly, there is no lump sum payment. Imparting know-how to the assessee's personnel would arise only after acquiring the know-how and, therefore, this imparting is distinct from acquisition of know-how though both of them are for the use of the assessees' business. As rightly held by the Tribunal, it is in the nature of a revenue expenditure incurred by the assessees in its business after acquiring the know-how for a lump sum consideration. Therefore, the entire amount has to be deducted under section 37(1) of the Act and it does not fall under section 35AB. - Decided in favor of assessee.
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