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2012 (9) TMI 299 - SC - Income TaxTechnical Assistance Agreement - Acquiring of know-how - deduction u/s 37 OR amortized u/s 35AB - Held that:- As directed to assessee in his own case in CIT Versus Drilcos (India) Pvt. Ltd. [2003 (12) TMI 32 - MADRAS HIGH COURT] payment was required to be considered only u/s 35AB & not entitled to have the amount paid for acquiring know-how as an item of revenue expenditure allowable as a deduction u/s 37. As Section 35AB says that the expenditure should have been incurred for the purposes of the business of the assessee, in the present case, the Technical Assistance Agreement was entered into between the assessee and the American company for acquiring know-how which was, in turn, to be used in the business of the assessee. Once Section 35AB of the Act comes into play, then Section 37 of the Act has no application - against assessee.
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