TaxTMI 
TaxTMI 
1980 (3) TMI 39
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....tance of the revenue, the following question of law has been referred to this court for opinion : " Whether, on the facts and in the circumstances of the case, the technical know-how in the form of blue prints, instructions, manuals, etc., would fall within the definition of ' plant ' appearing in section 43(3) of the Act and that depreciation and development rebate should be allowed on such te....
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.... the assessee is entitled to the depreciation and development rebate on the value of the technical know-how paid to the foreign concern. The question has been referred to this court for opinion at the instance of the revenue. The learned counsel for the revenue, relying on certain observations in Jeffrey v. Rolls-Royce Ltd. [1962] 40 TC 443 ; [1965] 56 ITR 580 (HL), contended that the know-how ....
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....ference but also makes it perceptible and visible and easily capable of being transmitted to others. Secondly, it was pointed out that having regard to the legislative intent to give a wide meaning to the word "plant ", material record of know-how is clearly included within the meaning of the word " plant " in s. 32. In that case, the assessee acquired drawings and patterns for the manufacture of ....
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....uld not be possible to ascertain the true profits of the assessee if no depreciation was allowed in the case of those items. It was further pointed out that the assessee-company would not have erected the factory for carrying on the manufacturing process without the expenditure incurred on the acquisition of those items which could be compendiously included in the expression " technical know-how "....