2003 (12) TMI 32

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.... BABU J.--The assessee made a claim for deduction of a sum of Rs. 17,49,889, which it had paid to its foreign collaborator in terms of the agreement which had been entered into between the parties on June 7, 1990. The payment was made during the previous year relevant to the assessment year 1993-94. That payment was, for the purpose of obtaining transfer of technical know-how which comprised of te....

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....ted by the assessing authority and the appellate authority. It is submitted for the Revenue that after the introduction of section 35AB in the Act, when the object for which the expenditure incurred is know-how, the same is governed only by that section, and deductions are allowable only in accordance therewith and it is not permissible to fall back on section 37. Learned counsel for the ass....

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....ing the know-how. It was also observed in that case that: "The time with reference to which the assessee's entitlement is to be judged is the previous year in which the payment was made and not the subsequent year in which the assessee's project was either abandoned or the know-how became useless by reason of the non-availability of other inputs required to make the project success." The ass....