1998 (11) TMI 49

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..... 0 out of Rs. 5,05,682 being the income-tax payable by the non-resident is entitled to be treated as cost of the plant and machinery, thus becoming eligible for depreciation and investment allowance ?" The assessment year is 1981-82. The assessee claimed that the amount of income-tax paid by the assessee in respect of the consideration paid by the assessee to the foreign collaborator should also .....

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..... f the assessee and forms part of the capital assets and therefore depreciation and development rebate was allowable on the amount paid to the foreign collaborator. The revenue has not produced before us the terms of the agreement entered into between the collaborator and the assessee and we must therefore accept what has been stated by the Tribunal. The Tribunal has held that the amount paid by th .....

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..... s right in its view that the amount so paid by the assessee was only in discharge of a liability which it had undertaken in terms of the agreement entered into between the assessee and the collaborator and it, therefore, forms part of the consideration for the agreement relating to know-how. We, therefore, answer the question in favour of the assessee and against the revenue.
Case laws, Deci .....

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