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2015 (4) TMI 332 - HC - Income TaxAddition on account of technical fee - whether is capital expenditure? - Held that:- Considering the material on record, especially the terms of the technical know-how agreement such as Article 14.3, 17, 17.1, 18, 18.2 and 22. The exercise of determining whether, regardless of nomenclature, any expenditure is in the revenue or the capital stream cannot be stereo typed into any formula. As noticed in Alembic Chemicals Work Co. Ltd. vs. CIT (1989 (3) TMI 5 - SUPREME Court) The exercise, therefore, is necessarily fact dependant. In the present case, based upon the terms and conditions which the parties agreed upon, the ITAT held that the payment of USD 3 lakhs could not be treated as capital expenditure. This Court finds no infirmity with that finding or any reason to interfere with the Tribunal’s decision. No substantial question of law arises under Section - Decided against revenue.
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