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2012 (3) TMI 58 - AT - Income TaxCapital OR Revenue Expenditure - Collaboration Agreements for "Electric Rice Cookers" and "Mixer Grinders" - Payment in "Lumpsum" and "Royalty" - Amount Capitalized and depreciation claimed - AO disallowed 25percent royalty after treating it towards cost of acquisition of the capital asset - Held That:- In view of Apex Court CIT vs I.A.E.C.(Pumps) Ltd. (1997 -TMI - 5672 - SUPREME Court) - Collaboration Agreement for Mixer Grinders amounts only to licence fee and not the price for acquisition of a capital asset. Payment to be treated as "revenue expenditure". Deduction under 80HHC - Sale of Scrap, insurance claim received, provisions written back - Held That:- Sale of scrap would be a part of the income from business for the purpose of computing the eligible deduction u/s 80HHC. 90% of the receipts from sale of scrap would be required to be deducted from the profits of business in terms of clause (baa) appended to section 80HHC
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