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2014 (5) TMI 852 - HC - Income TaxDisallowance of loss of foreign exchange fluctuation Held that:- A part of the business being handled by the erstwhile TATA IBM has been handed over to the assessee-company in view of bifurcation of the software and hardware business - For the transfer of domestic customer database and the man power, the assessee had paid ₹ 5.3 crores and ₹ 9.38 crores respectively towards the consideration as per the agreement entered into between the parties - insofar as payment for getting domestic customer database - assessee has only got right to use that database, the company which has provided such database is not precluded from using such database - the expenditure incurred is for the use of database and not for acquisitions of such database - payment made towards access to information base and for transition of customer order filing is a business consideration there is no question of acquisition of any assets when the access is made and the payment is made for the same - The payment cannot be treated as revenue expenditure there is no infirmity or irregularity in the finding of the Tribunal. Payment made towards transfer of human skill Held that:- Relying upon Jonas Woodhead And Sons (India) Limited Versus Commissioner of Income-Tax [1997 (2) TMI 4 - SUPREME Court] - The idea of "once for all" payment and "enduring benefit" are not to be treated as something akin to statutory conditions, nor are the notions of "capital" or "revenue" a judicial fetish - What is capital expenditure and what is revenue are not eternal varieties but must needs be flexible so as to the respond to the changing economic realities of business - The expression "asset or advantage of an enduring nature" was evolved to emphasize the element of a sufficient degree of durability appropriate to the context the order of the Tribunal is upheld and as such no substantial question of law arises foe consideration - Decided against Revenue.
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