1980 (2) TMI 38

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....nd in the circumstances of the case and on a proper construction of the agreement dated 31st December, 1960, the Tribunal was right in holding that the payment to M/s. RIG by way of royalty (Rs. 62,600) and tile expenditure incurred by the assessee for payment of remuneration and travelling expenses for the German technicians were items of revenue expenditure deductible in computing the assessee's income from business ?" The statement of the case relates to the assessment year 1962-63, the relevant previous year being the calendar year 1961. The assessee is a company. It is engaged in the manufacture, inter alia, of low and high tension porcelain insulators. Under the aforesaid agreement M/s. Roeanthal Isoletoren Gesellschaft (here....

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....he relevant facts relating to art. 3 of the agreement have not been found nor stated by the Tribunal. In these circumstances, they rightly submitted that the aforesaid questions cannot be answered by us. We are, therefore, not recording the arguments made and the cause cited at the Bar. It is not possible nor advisable to catalogue the relevant facts relating to art. 3 of the agreement. Therefore, we will indicate only one of those relevant facts so that the Tribunal may appreciate our observations. Article 3 deals with the technical " know-how". The main paragraph of art. 3 provides that RIG shall give to the assessee the technical " know-how " as defined therein for an economical manufacture of those products by the assessee. The ma....