https://www.taxtmi.com/caselaws?id=31547 The Tribunal concluded that the assessee is entitled to claim depreciation on engineering service fees paid to a foreign company for setting up a plant, not for manufacturing goods, under Section 32 of the Income Tax Act. The collaboration agreement specified the purpose of the payment as setting up the plant, not for manufacturing goods, making the assessee eligible for depreciation. The Tribunal held that the collaboration agreement did not relate to the manufacture or processing of goods, entitling the assessee to depreciation under Section 32 instead of deduction under Section 35AB. The appeal was dismissed, emphasizing the importance of accurately interpreting collaboration agreements for tax treatment. en-us Thu, 24 May 2007 00:00:00 +0530 Sat, 22 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=31547 The Tribunal concluded that the assessee is entitled to claim depreciation on engineering service fees paid to a foreign company for setting up a plant, not for manufacturing goods, under Section 32 of the Income Tax Act. The collaboration agreement specified the purpose of the payment as setting up the plant, not for manufacturing goods, making the assessee eligible for depreciation. The Tribunal held that the collaboration agreement did not relate to the manufacture or processing of goods, entitling the assessee to depreciation under Section 32 instead of deduction under Section 35AB. The appeal was dismissed, emphasizing the importance of accurately interpreting collaboration agreements for tax treatment. Case-Laws Income Tax Thu, 24 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=31547