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2023 (9) TMI 614 - HC - Income TaxAllowable revenue expenditure - treatment to the travelling expenses of the Director's wives as well as fees paid for professional service - HELD THAT:- The agreement dated 10.11.1995 would fall under Section 37 of the Act, thus, the service rendered relate to the re-arrangment of manufacturing and sale activities. Further Section 35B provides that where the assessee has paid any lump sum consideration for acquiring any know how for use for the purpose of his business, deduction is allowable to the assessee at rate of 1/6 in six consecutive years. This expenditure is to be treated as revenue expenditure. The judgment of Delhi High Court in a case of Indo Rama Synthetics India Ltd [2009 (9) TMI 635 - DELHI HIGH COURT] is directly applicable to the facts of the present case. Also relying on Honda Siel Cars India Ltd [2017 (6) TMI 524 - SUPREME COURT] the appeals are allowed and impugned orders are set aside. The appellant (s) company shall be entitled to treat the travelling expenses of the Director's wives as well as fees paid to M/s Kinsey and Co Ltd for professional service for the relevant assessment year as revenue expenditure.
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