2015 (4) TMI 332

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..... gardless of nomenclature, any expenditure is in the revenue or the capital stream cannot be stereo typed into any formula. As noticed in Alembic Chemicals Work Co. Ltd. vs. CIT (1989 (3) TMI 5 - SUPREME Court) The exercise, therefore, is necessarily fact dependant. In the present case, based upon the terms and conditions which the parties agreed upon, the ITAT held that the payment of USD 3 la .....

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..... relevant facts are that the assessee in Assessment Year (AY) 2005-06 reported business income of ₹ 81,772,968/-. The assessment was made for ₹ 98,338,928/- after bringing to tax a sum of ₹ 43.75 lakhs. The assessee had in this regard relied upon the technological collaboration agreement in terms of which it was granted an exclusive and non-transferable right and license to use te .....

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..... so the various decisions of this Court including CIT vs. J.K.Synthetics 309 ITR 371 and CIT vs. Goodyear India Ltd. 243 ITR 235 concluded as follows: 24 . From the aforementioned discussion, it is evident that assessee was entitled only access to the technical knowledge and information from Daikin for manufacturing of licensed and existing products and it was not a case of absolute transfer of .....

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..... cel of capital structure of company. We find that this issue is squarely covered by the decision of Hon'ble Jurisdictional High Court the case of JK Synthetics (supra), wherein Hon'ble Delhi High Court has inter-alia held as under: - (v) expenditure incurred for grant of License which accords 'access' to technical knowledge, as against, 'absolute ' transfer of technical .....

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..... eral-rule, even in generality of cases sufficiently accurate and reasonably comprehensive, to draw any clear line of demarcation.) The exercise, therefore, is necessarily fact dependant. In the present case, based upon the terms and conditions which the parties agreed upon, the ITAT held that the payment of USD 3 lakhs could not be treated as capital expenditure. This Court finds no infirmity wit .....

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