TMI Blog2008 (2) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts - technical support was in the form of technical advice rather than sharing of any technical knowhow, designs, drawings etc. – allowable for deduction as revenue expenditure - 909 of 2007 - - - Dated:- 19-2-2008 - MADAN B. LOKUR and V. B. GUPTA JJ. R. D. Jolly, for the appellant. None appeared for the assessee. JUDGMENT The judgment of the court was delivered by MADAN B. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re as claimed by the assessee. 3. Feeling aggrieved, the assessee took up the matter before the Commissioner of Income Tax (Appeals) [CIT (A)] who came to the conclusion that in fact the assessee was only being supplied with technical support to enable it to manufacture the products as required and that this was, therefore, not a capital expenditure but a revenue expenditure. There was no tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax , [1987] 163 ITR 606, the Bombay High Court held that if the knowhow acquired relates to the process of manufacture, then any payment made for this purpose would have to be considered as a revenue expenditure since the acquirer does not obtain any asset of an enduring-nature " it is more in the nature of a payment for consultancy. 7. In so far as the present case i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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