1998 (3) TMI 38

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....ALASUBRAMANIAN J.---The assessee is a non-resident company. The Income-tax Officer completed the assessment for the assessment year 1968-69 and found that the assessee had paid a lump sum of Rs. 10,000 to its foreign collaborator and claimed the same as deduction in computing its business income. The Income-tax Officer disallowed the claim on the ground that the expenditure was incurred for the ac....

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....ation before this court in Tax Case No. 624 of 1977. "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee's payment of Rs. 36,179 to the foreign company Leslie Hartridge Limited of U. K. should be allowed as a revenue expenditure incurred wholly for the purpose of the business ?" This court in Tax Case No. 624 of 1977, by ....

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....ances of the case, the Appellate Tribunal was right in holding that the payment of Rs. 36,179 to the foreign company Leslie Hartridge Ltd. U. K., should be allowed as revenue expenditure incurred wholly for the purpose of the business ?" The Tribunal proceeded on the basis that there was no acquisition of capital assets and the amount paid was for carrying on the business and for better product....