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2017 (6) TMI 554 - HC - Income TaxCan deduction under section 35AB be claimed for acquiring knowhow even if manufacturing activity had not commenced - Held that:- The assessee was engaged already in the business of manufacturing soap - In order to set up soda ash manufacturing plant, the assessee acquired technical knowhow by making lumpsum payment - thus setting up of the manufacturing facility of soda ash was by way of an extension of the existing business of the assessee of manufacturing soap - hence deduction under section 35AB cannot be denied - exemption to the extent of 1/6th of the expenditure incurred by the assessee by way of lumpsum payment towards consideration for acquiring technical knowhow for the use for business is granted - Decided in favor of revenue
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