TMI Blog1993 (3) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee entered into an agreement on June 3, 1969, with Meetler's Sons Ltd. of Switzerland to make their know-how available for manufacturing certain products in India. For obtaining this know-how and the drawings, the assessee, in all, paid Rs. 1,08,000 to the foreign company. The assessee had incurred travelling expenses amounting to Rs. 17,219 in connection with the acquisition of this technic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. This view was confirmed by the Appellate Assistant Commissioner. The assessee preferred a second appeal to the Tribunal. Following the decision of this court in CIT v. Elecon Engineering Co. Ltd. [1974] 96 ITR 672, the Tribunal held that the assessee was entitled to capitalise the expenditure in the manner in which it did and that depreciation was allowable on this asset. The Tribunal also he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration as far as the actual cost of the asset is concerned and the assessee is entitled to depreciation thereon ?" As stated earlier, the Tribunal had, following the decision of this court, held that the assessee is entitled to depreciation on the expenditure of Rs. 1,08,000 incurred on technical know-how in the form of drawings and designs. The view taken by this court was confirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery alone. It further held that the travelling expenses incurred by the technical personnel in connection with the inspection and placing of orders for plant and machinery and the expenses incurred for the visits for doing the design and preliminary engineering work for the installation of the plant can be regarded as directly and intimately connected with the installation of the machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X
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