Technical information fees and factory asset depreciation were allowed under binding precedent, while accrued leave salary remained open.

Technical information fees paid by the assessee were treated as allowable business expenditure because the issue was already covered by binding Full Bench precedent of the same Court. Depreciation on roads and drains within the factory premises was also allowed, the Court following its earlier Division Bench decision on factory assets. Both questions were answered in favour of the assessee and against the Revenue. The question concerning accrued leave salary was left open and was not decided.

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Issues: (i) whether technical information fees paid by the assessee were allowable as business expenditure; (ii) whether depreciation was allowable on roads and drains within the factory premises.

Issue (i): whether technical information fees paid by the assessee were allowable as business expenditure.

Analysis: The issue was held to be covered by an earlier Full Bench decision of the same Court on the allowability of such expenditure.

Conclusion: The question was answered in the affirmative and against the Revenue.

Issue (ii): whether depreciation was allowable on roads and drains within the factory premises.

Analysis: The issue was held to be governed by an earlier Division Bench decision of the same Court on depreciation for such factory assets.

Conclusion: The question was answered in the affirmative and against the Revenue.

Final Conclusion: The reference was answered only on the two decided questions, both in favour of the assessee, while the first question concerning accrued leave salary was left open.

Ratio Decidendi: Where an issue is already covered by binding precedent of the same Court, the referring court answers it consistently with that precedent; technical information fees and depreciation on factory roads and drains were therefore held allowable on the facts referred.

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