1991 (9) TMI 50

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..... On June 29, 1977, three books of manuals containing the information regarding the technical details in production of catalysts were received by the Indian firm. The manuals were for the exclusive use of the Indian company and no portion thereof may be disclosed to any of the persons and in the assessment year 1971-72, the assessee-company claimed development rebate and depreciation at the rate of 15% on Rs. 18.75 lakhs being the amount paid by the assessee to the CCI. The Tribunal determined the cost of the manuals at Rs. 25,000 and allowed depreciation and development rebate thereon. But, by judgment dated April 2, 1982, in I.T.R. Nos. 103 and 104 of 1979 (See [1982] 137 ITR 110), this court found, on a reference at the instance of the a....

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.... following question of law for our opinion which was referred, viz.: " Whether, on the facts and circumstances of the case, the Tribunal was justified in excluding the know-how as detailed below from the know-how as contained and conveyed in the manuals. (Rs.) 1. Scheme for components of the catalysts 50,000 2. Quality control test 25,000 3. Drawing of process scheme engineering 75,000 4. Personnel organisation, management, manufacture, sales and service 50,000 5. Estimate of direct / indirect maintenance labour 30,000 6. Maintenance schedule 20,000 7. Process design information for customer utilisation 50,000 ------------------- 3,00,000 ------------------- By a supplementary statement of case, anothe....

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.... 3. Quality control tests 4. Detailed engineering drawing of processes 5. Layout of all equipment and building 6. Personnel Organisation schemes 7. Estimate of direct maintenance labour 8. Process design information for customer 9. Design of plants to assist customers Before the Tribunal, two workings were given by the assessee allocating the total payment of Rs. 18.75 lakhs amongst the various components of what has been obtained by the assessee. These two workings admit the fact that part of the cost should be attributed to the composition of the catalysts, patents and trade manuals. Each of various components does have some value even in the assumption of the assessee. A rational basis for ascertaining the cost of t....