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TMI Blog1983 (8) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... in manufacturing air compressors, centrifugal pumps and agricultural implements. We are concerned in this reference with the assessment years 1963-64 and 1965-66. For these two years, the assessee had respectively paid Rs. 17,231 and Rs. 5,765 to Sulzer-Freres, Winterthur (hereinafter referred to as "the Swiss company") for drawings obtained from them. Similarly, for the assessment year 1965-66, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal that the agreements had been entered into with the Swiss company and the American company with a view to obtaining technical know-how for the manufacture of centrifugal pumps. It was contended that there were a number of ways in which technical know-how could be obtained and that parting with the drawings was one of the ways. Reference was made to the agreements with the Swiss company a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the payment of Rs. 17,231 for the assessment year 1963-64 and Rs. 5,765 for the assessment year 1965-66 made by the assessee to Sulzer-Freres, Winterthur, Switzerland, in pursuance of the collaboration agreement between them, were expenditure capital in nature and not revenue expenditure ? (2) Whether, on the facts and in the circumstances of the case, the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 ITR 692. It may also be mentioned in passing that earlier, the Revenue had been relying upon the decision of the Karnataka High Court in Mysore Kirloskar Ltd. v. CIT [1968] 67 ITR 23, which had been later on overruled by a Full Bench decision of that very High Court. This decision of the Full Bench is reported in Mysore Kirloskar Ltd. v. CIT [1978] 114 ITR 443. We need not, however, advert to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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