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2018 (7) TMI 2094 - ITAT DELHIPayment made for technical knowhow - capital in nature or revenue - HELD THAT:- CIT(A) has relied on Supreme Court Decision in the case of Southern Switchgear Ltd. vs. CIT [1997 (12) TMI 105 - SC ORDER] is not applicable in the present case because in that case agreement was made for a period of five years and it was expressly stipulated that after expiry of agreement, the method, production, procedure etc. would remain with the Indian assessee, whereas no such stipulation is made in the agreements made in the case before us so as to observe any benefit of enduring nature with the assessee. In the present case, the assessee has acquired only right to use of technical knowledge of the foreign company. Royalty paid by the assessee in the peculiar facts and circumstances of the present case, was in the nature of revenue expenditure incurred by the assessee. Therefore, we set aside the orders of the authorities below on this issue and decide it in favour of the assessee.
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