1982 (8) TMI 37

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....er referred to as " the Act "). The Income-tax Appellate Tribunal, Patna Bench ' B ' (hereinafter referred to as " the Tribunal "), has rejected the application of the Revenue under s 256(1) of the Act on the ground that the question of law raised by the Department was merely academic in nature. There was an agreement between the assessee on the one hand and Japanese firm, namely, Yodagawa S....

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.... the second item is always in the nature of revenue because the fund of knowledge which is acquired by a person is utilised for manufacturing process. The fund of knowledge gained by a person from another person cannot be kept idle and it must be pressed into action so that the result of knowledge must come out in the shape of a material thing. The exact position of the above situation is present ....

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....lly in course of production. " Having so recorded its findings, the Tribunal has applied the principles of law in connection with revenue expenditure vis-a-vis capital expenditure, as laid down by the Supreme Court in the case of CIT v. Ciba of India Ltd. [1968] 69 ITR 692, which principles have been universally followed by both the Supreme Court itself and the various High Courts. In this cont....