1993 (3) TMI 47

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.... J.-The facts necessary for answering this reference are that the assessee entered into an agreement on June 3, 1969, with Meetler's Sons Ltd. of Switzerland to make their know-how available for manufacturing certain products in India. For obtaining this know-how and the drawings, the assessee, in all, paid Rs. 1,08,000 to the foreign company. The assessee had incurred travelling expenses amountin....

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....r the manufacturing activity had already started in the year 1968-69. This view was confirmed by the Appellate Assistant Commissioner. The assessee preferred a second appeal to the Tribunal. Following the decision of this court in CIT v. Elecon Engineering Co. Ltd. [1974] 96 ITR 672, the Tribunal held that the assessee was entitled to capitalise the expenditure in the manner in which it did and....

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....ase, the travelling expenditure of Rs. 17,219 had to be taken into consideration as far as the actual cost of the asset is concerned and the assessee is entitled to depreciation thereon ?" As stated earlier, the Tribunal had, following the decision of this court, held that the assessee is entitled to depreciation on the expenditure of Rs. 1,08,000 incurred on technical know-how in the form of d....

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....reat the words "actual cost" to mean the cost paid to the vendors of the machinery alone. It further held that the travelling expenses incurred by the technical personnel in connection with the inspection and placing of orders for plant and machinery and the expenses incurred for the visits for doing the design and preliminary engineering work for the installation of the plant can be regarded as d....