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Income Tax - Highlights / Catch Notes

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Disallowance of depreciation on technical know-how - principle ...

Income Tax

June 30, 2020

Disallowance of depreciation on technical know-how - principle of consistency - the entire expenses directed to be treated as capital in nature and depreciation be allowed on the same.

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  2. Nature of expenses on Technical know-how fee - such technical know-how was used for the purpose of manufacturing the existing items - held as revenue expenditure - HC

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  9. Disallowance of building renovation expenses – Capital or revenue expenses - the expenses are to be treated as revenue in nature and allowable u/s 37(1) of the Act - AT

  10. Disallowance of royalty - capital OR revenue expenditure - The ownership/ proprietary rights in the technical know-how continue to vest in lithe censor and the assessee...

 

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