1983 (7) TMI 6

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.... the liabilities ? 2. Whether, on the facts and circumstances of this case, the assessee is entitled to a deduction of Rs. 20,313 under section 35A of the Income-tax Act, 1961, for the assessment year 1969-70 ? " The Revenue also has sought and obtained a reference on the following question as arising out of the same order of the Tribunal: " Whether, on the facts and circumstances of this case, the assessee is entitled to a deduction under section 80J at six, per cent. of the capital employed without it being limited on a proportionate time basis for the assessment year 1968-69 ? So far as the question referred at the instance of the Revenue in T.C. No. 862 of 1977 is concerned, we find that the question is covered by the decisi....

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....the know-how, secret formula, designs and specifications are either patent rights or copyrights, for, the deduction under section 35A of the Income-tax Act is only applicable in respect of an acquisition of patent rights and copyrights. The agreement between the assessee and Rockweld Limited, England, does not indicate that the material which is the subject-matter of a bargain is either patent rights or copyrights. Nor has any material been placed before the authorities below by the assessee to show that what he has bargained for with the foreign company is for the acquisition of either copyrights or patent rights. On the materials on record, we, therefore, find that both the Appellate Assistant Commissioner as well as the Tribunal are righ....

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....borrowed in the computation of capital, it cannot be given effect to. In that case, the moneys borrowed by the assessee for the purpose of the business was directed to be taken as part of the capital employed. According to the learned counsel for the assessee, the principle of the said decision will apply to this case as well and that the expression " borrowed moneys " and " debts owed by the assessee " occurring in sub-rule (3) of rule 19A are synonymous. We are of the view that both sides have put forward contentions. The Revenue contends that the debts owed by the assessee have to be excluded from the aggregate of the amounts ascertained under sub-rule (2) of rule 19A as the debts owed cannot in any sense be construed as capital employed....