TMI Blog2003 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction under section 37. That payment was required to be considered only under section 35AB and the deduction that was allowable was one-sixth of the amount as provided in that section - - - - - Dated:- 2-12-2003 - Judge(s) : R. JAYASIMHA BABU., S. R. SINGHARAVELU. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.--The assessee made a claim for deduction of a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich it received certain sums, which was about 60 per cent. of the amount that had been paid by the assessee. The assessee's claim that the amount paid is deductible as an item of expenditure under section 37 of the Income-tax Act, as in its view, it was a revenue expenditure, was accepted by the Tribunal, though such a plea has been rejected by the assessing authority and the appellate authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3] 259 ITR 582. It was held therein that "irrespective of whether it is a capital or revenue expenditure", the expenditure incurred for the purpose of acquiring know-how was required to be treated only in accordance with section 35AB and the deduction that was allowable was one-sixth of the amount paid as lumpsum consideration for acquiring the know-how. It was also observed in that case that: " ..... X X X X Extracts X X X X X X X X Extracts X X X X
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