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2010 (12) TMI 612 - AT - Income TaxDepreciation - computer peripherals - Royalty - Addition - in the case of the assessee for assessment years 2003-04 and 2004-05, in ITA Nos. 1698, 1684 and 2161(Del)09 (copy placed at pages 144 to 145 of the APB), remitted the matter to the file of the AO for examining the nature and character of the computer peripherals, whether they could be used independently on the computer - Accordingly the matter is remitted back to AO Regarding royalty - since under the agreement, the assessee merely acquired the limited right to use the technical know-how/information and no title thereto, the payment of technical know-how fee is allowable as a deduction - being of capital nature and royalty payment in consideration of providing technology services; that the payment of royalty depended on the quantum of domestic as well as export sales which would decrease or increase every year, depending on the decrease or increase in the sales; that this payment was not because of 'transfer' of technology, but for providing 'technical services'; and that so, the payment of royalty, which was a continuous process, should have been treated as a revenue expenditure - Decided in favour of the assessee Regarding addition on account of repairs and maintenance (building) - It has been contended that the expenditure on SLFS was incurred for storage of hazardous waste and to prevent pollution of air, water and ground; that SLFS was a statutory requirement under the Water (Prevention and Control of Pollution) Act, 1974 and under the Air (Prevention and Control of Pollution) Act, 1981, so as to make necessary provision for disposal of hazardous waste - As such, in view of the nature of the expenditure, which remains, undisputedly, a statutory requirement enabling the assessee to carry on its business - Appeal is rejected
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