2012 (9) TMI 299

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....filed by the Department Should be "Assessee" concerns Assessment Year 1993-1994. The assessee manufactures equipments which are used for mining. It entered into an Agreement with an American company on 7th June, 1990. The Agreement with the American company called `Licence and Technical Assistance Agreement" under which the American company was required to transfer technical know-how to the ....

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.... to this case. We find no merit in the said contention. Sub-section (1) of Section 35AB of the Act clearly states that where the assessee has paid in any previous year any lump sum consideration for acquiring any know-how for use for the purposes of his business, then one-sixth of the amount so paid shall be deducted in computing the profits and gains of the business for that previous year and ....

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.... assessee to the American company. However, the word `for' in Section 35AB of the Act, which is a preposition in English grammar, has to be emphasised while interpreting Section 35AB of the Act. Section 35AB of the Act says that the expenditure should have been incurred for the purposes of the business of the assessee. In the present case, the Technical Assistance Agreement was entered into betwee....