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Issues: (i) Whether the technical fee paid to the foreign collaborator was deductible in full as revenue expenditure; (ii) Whether the Kottayam unit was a new industrial undertaking entitled to deduction under section 80J.
Issue (i): Whether the technical fee paid to the foreign collaborator was deductible in full as revenue expenditure.
Analysis: The reference concerned the same assessee and the same nature of payment as in the earlier assessment year. The Court found no factual or legal distinction from its earlier decision in the assessee's own case, where the entire technical fee had been held allowable as revenue expenditure.
Conclusion: The full technical fee payment was deductible as revenue expenditure, in favour of the assessee.
Issue (ii): Whether the Kottayam unit was a new industrial undertaking entitled to deduction under section 80J.
Analysis: The Court again followed its earlier ruling in the assessee's case and found no basis to depart from that view. The Kottayam unit continued to satisfy the requirements of a new industrial undertaking for the purpose of section 80J.
Conclusion: The Kottayam unit was a new industrial undertaking entitled to deduction under section 80J, in favour of the assessee.
Final Conclusion: Both referred questions were answered against the Revenue and the assessee's claim was upheld in full.
Ratio Decidendi: Where the same issue has already been decided in the assessee's own case for an earlier year and no distinguishing feature is shown, the Court will follow the earlier view and allow the deduction accordingly.
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