2008 (2) TMI 275

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....t was delivered by MADAN B. LOKUR, J. - The Revenue is aggrieved by an order dated 17^th November, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench "G" in ITA No.5079/Del of 2004 relevant for the assessment year 2001-2002. 2. The assessee had entered into a joint venture agreement with Tyco Asia Investment Ltd. and Elentec Co. Ltd. to carry out manufacturing operations of CRT so....

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.... expenditure. There was no transfer of technical knowhow in the setting up of the plant and machinery but the payment was only to enable the assessee to manufacture the products. In other words, the technical support was in the form of technical advice rather than sharing of any technical knowhow, designs, drawings etc. 4. Feeling aggrieved by the order passed by the CIT (A), the Revenue prefer....

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....r as the present case is concerned, we find that the only service that was rendered to the assessee was in relation to the process of manufacture. Even assuming that this would give the assessee an advantage of an enduring nature, but as held by the Supreme Court in Empire Jute Co. Ltd. v. Commissioner of Income Tax, [1980] 124 ITR 1, it is not every advantage of an enduring nature that can be cla....