TMI Blog1993 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961 : "Whether, on the facts and in the circumstances of the case, expenditure of Rs. 25,077 incurred by the assessee-company in respect of foreign tour of its general manager, Shri Iyer, in June-July 1970, is capital expenditure or whether it is revenue expenditure as contended by the assessee ?" The assessee's general manager was sent on a foreign tour during June-July 1970, for negotiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assistant Commissioner who agreed with the view taken by the Income-tax Officer and dismissed the appeal so far as this claim was concerned. The assessee then approached the Tribunal but again failed. It, therefore, moved the Tribunal for referring the above stated question to this court. What is contended by learned counsel for the assessee is that the assessee had already a technical collabo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e what is required to be borne in mind is that it is found as a matter of fact that the assessee wanted to enter into an agreement for technical collaboration with Dade Reagent, whereas its earlier technical collaboration agreement was with McGaw Ravindra Laboratories (Inc) U. S. A., though both of them happen to be subsidiaries of the American Hospital Supply Corporation. It is also found as a ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the foreign tour of the managing director was in connection with establishment of a unit for manufacturing a new product. The assessee, therefore, cannot now be permitted to say that expenditure incurred during the relevant assessment year was not in connection with a new product but was for the purpose of its existing business. Therefore, we need not consider the contention raised on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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