1982 (9) TMI 178

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....ing to the Revenue, the amount paid for technical know-how could not be considered a tangible assets which would depreciate by user of the same and, therefore, it was not entitled to depreciation. According to the ld. Departmental representative, the decision of the Gujarat High Court in the case of CIT vs. Elecon Engg. Co. Ltd. (1974) 96 ITR 672 (Guj) relied upon by the CIT (A) was not accepted b....

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....case of CIT vs. Emco Electro Pvt. Ltd. (1979) 118 ITR 865 (Bom) held likewise. In our opinion, the CIT (A) was justified in allowing the assessee's claim. 3. We may state that during the course of the hearing the ld. Departmental Representative has invited our attention to cl. 18 of the agreement dt. 26th Nov., 1969 between the assessee and the foreign collaborator which reads as under: "Clause ....

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....censor to manufacture the spare parts therefore, if necessary. This also shall apply, if licensor so desires, in the event licensee ceases to manufacture at any time spare parts for any model sold". The ld. Departmental representative has pointed out that as per the terms of the agreement, the ownership of the assets remained with the foreigner. In terms of this clause, the assessee was therefore....