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2005 (8) TMI 54 - HC - Income TaxAddition of Rs. 12,89,251 treated as capital expenditure on account of technical know-how - In the present case, we have seen that under the agreement technical know-how was to be provided for the period of seven years and not parting permanently. It was not for the establishment of any plant or machinery but for the manufacturing of equipment and machinery for cane sugar plant. Thus, we are of the view that the technical know-how received by the assessee was not of enduring nature and the payment for acquiring the technical know-how was in the nature of revenue expenditure and not capital expenditure
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