2001 (1) TMI 976

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....chal, J. - At the instance of the revenue, the Tribunal, Ahmedabad Bench 'B', has referred the following two questions of law for the opinion of this Court in respect of the assessment year 1981-82 : "1. Whether, in law and on facts, the assessee is entitled to allowance of technical know-how fees of Rs. 7,16,654 paid to WCW, West Germany ? 2. Whether, in law and on facts, the assessee is en....

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....s. 1,12,30,810 as fees for designs, calculations, manufacturing drawings, specifications, etc., to Weserhutte, West Germany, as per the agreement dated 6-8-1980. This payment was claimed as a deduction for the reason that know-how, etc., had been acquired on behalf of another company by the name of Negveli Lignite Corpn. This company had paid the amount to the assessee, i.e., Elecon Engineering, f....

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....ed to allowance as revenue expenditure. Again in CIT v. Suhrid Geigy Ltd. [1996] 220 ITR 153, the Division Bench of this Court has taken a view that where expenses are incurred in areas which supplement the existing business and are not a fresh or new venture and the agreement for acquiring technical know-how pertains to a product already in the line of the established business and is intended to ....