Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 598 - HC - Income TaxDeduction claimed for the expenditure on technical consultancy fees - Revenue contends that such expenditure should be treated as provided u/s 35AB - Held that:- Taking into account the relevant clauses of the agreement it can be concluded that such expenditure did not result into any enduring benefit but was only for improving the existing efficiency of the assessee company and was thus was purely revenue in nature - the nature of expenditure is found to be revenue in nature, then section 35AB may not apply - such provision would not apply to a revenue expenditure even if the same was incurred for acquisition of technical know-how - Deduction on such expenditure was available even before the introduction of section 35AB and such deduction cannot be curtailed or limited by applying section 35AB - thus taking such an expenditure out of section 37(1) would not arise - in favour of assessee.
|