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2018 (11) TMI 1260 - HC - Income TaxTravel expenses claimed as a deduction from the technical know-how fees - claim prohibited by Section 115A(3) - Held that:- The expenditure incurred is a direct consequence of the agreement for supply of technical services. The technical collaboration agreement necessitated deputation of technical personnel from the foreign company to the KSEB to work within India and in the facilities of the KSEB. The expenditure now claimed is of the travel expenses incurred by the assessee with respect to the technical personnel so deputed by the foreign company to the KSEB. This expenditure incurred has a direct nexus with the technical services supplied and deduction thereof is specifically prohibited under sub-section (3) of Section 115A. In such circumstances, we do not see any reason to interfere with the order of the Tribunal. We answer the question of law raised, against the assessee and in favour of the Revenue.
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