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2014 (7) TMI 92 - HC - Income TaxAllowability of expenses u/s 37(1) of the Act – Technical know-how fee - revenue expense or capital expense – Held that:- Following Commissioner of Income Tax v. Swaraj Engines Ltd. [2008 (5) TMI 257 - SUPREME COURT] and Dy. CIT v. Sayaji Industries Ltd. [2013 (4) TMI 11 - GUJARAT HIGH COURT] - assessee was merely a licensee for the purpose of its business temporarily - For acquisition of know-how, the assessee paid lump sum payment - It had also come on record before the Tribunal that such technical know-how was used for the purpose of manufacturing the existing items which the assessee was manufacturing since years - the expenditure are revenue in nature and the expenses are allowable u/s 37(1) of the Act – Decided against Revenue.
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