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2008 (3) TMI 679 - HC - Income TaxLong-term advantage of an enduring advantage - Payment towards licence fee for acquisition of technical knowledge - revenue or capital expenditure - AO unable to explain why after a gap of almost 10 years decide to treat the expenditure incurred by the assessee as a capital expenditure - HELD THAT:- We do not find any reason to differ with the opinion on the facts of this case and it is quite clear that the ratio of the decisions of the Supreme Court in Jonas Woodhead & Sons (India) Ltd.’s case [1997 (2) TMI 4 - SUPREME COURT] and Empire Jute Co. Ltd.’s case [1980 (5) TMI 1 - SUPREME COURT] were fully applicable to the facts of this case and both the authorities were right in concluding that the payments made by the assessee towards licence fee to SECL was a revenue expenditure. We may note that the Assessing Officer had allowed 75 per cent of the expenditure but had disallowed only 25 per cent of the licence fee. Therefore, the dispute is limited only to the 25 per cent amount. No substantial question of law arises - Appeal is dismissed.
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