https://www.taxtmi.com/caselaws?id=207267 The High Court of Madras ruled in a tax case regarding the allowability of expenditure for the purchase of design and drawings under the Income Tax Act. The Court held that the payment for designs and drawings constituted technical know-how, falling under Section 35AB for deduction, overruling the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. However, the consultancy charge for a market survey was deemed a business expenditure under Section 37(1). The Court partially allowed the Tax Case Appeal, siding with the Revenue on the payment for designs and drawings and with the assessee on the consultancy charge. en-us Wed, 16 Nov 2011 00:00:00 +0530 Tue, 06 Dec 2011 22:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207267 The High Court of Madras ruled in a tax case regarding the allowability of expenditure for the purchase of design and drawings under the Income Tax Act. The Court held that the payment for designs and drawings constituted technical know-how, falling under Section 35AB for deduction, overruling the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. However, the consultancy charge for a market survey was deemed a business expenditure under Section 37(1). The Court partially allowed the Tax Case Appeal, siding with the Revenue on the payment for designs and drawings and with the assessee on the consultancy charge. Case-Laws Income Tax Wed, 16 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207267