TMI Blog2011 (9) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... d party under its direct supervision and control Regarding expenditure incurred on acquisition of trade-mark under Section 35A - Tribunal has also considered the alternate argument of the assessee and held that even if the relief under Section 35A of the Act is not allowable to the assessee, then the relief would be allowable under Section 37 of the Act in the light of the judgment of the Apex court in the case of Alembic Chemical Works Co. Ltd. V/s. CIT reported in 177 ITR 377 - Since the decision of the ITAT on the alternative claim of the assessee has not been challenged in the appeal - appeal is disposed off - Income Tax Appeal No. 466 of 2007 - - - Dated:- 14-9-2011 - J.P. Devadhar, K.K. Tated, JJ. Suresh Kumar for the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely. 4. The expenditure on technical knowhow was claimed by the assessee eligible for deduction under Section 35AB of the Income Tax Act, 1961 ('the Act' for short). The assessing officer disallowed the claim of the assessee mainly on the ground that the assessee itself was not involved in the manufacturing activities. On appeal, the CIT(A) set aside the order of the assessing officer. On further appeal, the ITAT confirmed the order of the CIT(A) on the ground that the deduction under Section 35AB of the Act is allowable subject to fulfillment of two conditions, namely, the assessee should have acquired the knowhow against the lumpsum consideration and such technical knowhow must be any industrial information or technique likely to assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ademark, meaning thereby the trademark and patent right move together and if trademark is purchased, the patent right with respect to that particular trademark is also passed on to the buyer in the transactions in the pharmaceutical fields. The Tribunal has also considered the alternate argument of the assessee and held that even if the relief under Section 35A of the Act is not allowable to the assessee, then the relief would be allowable under Section 37 of the Act in the light of the judgment of the Apex court in the case of Alembic Chemical Works Co. Ltd. V/s. CIT reported in 177 ITR 377. Thus, by allowing the claim of the assessee under Section 35A, the assessee would get the relief in the assessment year to the extent of Rs.2,42,85,71 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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