COMMISSIONER OF INCOME TAX Vs. MOLEX (INDIA) LTD.

JUDGEMENT

(1.) This appeal is by the revenue, challenging the order passed by the Tribunal which has held that the expenses incurred for imparting technical know-how to the assessee is to be treated as a revenue expenditure under Section 37(1) of the Income-tax Act, 1961 (The Act') and the entire expenditure is allowable instead of 1/6th allowed by the Assessing Officer. The appeal also pertains to two other aspects which are now concluded by the Judgments of the Apex Court.

(2.) The brief facts leading to this proceeding is as under:

(3.) At the time of admitting this appeal, though three substantial questions of law were raised in the appeal memo, it was held question No. 2 is already answered against the revenue in the connected matter by this Court in ITA 134/2005 on 3-3-2010 and question No. 3 is answered against the revenue by the Judgment of this Court in CIT v. Bharat Earth Movers Ltd.,2004 137 Tax 421(Kar.) and, therefore, the appeal was admitted to consider question No. 1. The said question No. 1 reads as under: