DEPUTY COMMISSIONER OF INCOME TAX Vs. DCIBATUL LTD.

JUDGEMENT

(1.) In the present Appeal preferred under section 260A of the Income-tax Act, 1961 [hereinafter referred to as "Act" for short] challenge is made to the impugned Order of the Income Tax Appellate Tribunal, Ahmedabad ["Tribunal" for short] dated 01.03.2000 rendered in ITA No. 3106/Ahd/1992 for A.Y. 1989-90, proposing the following substantial questions of law for our consideration :

(2.) The assessee-Company claimed technical know-how fees of Rs. 24,04,000/- in the Profit & Loss Account. The Assessing Officer, after detailed consideration of such expenditure, held this to be revenue in nature. It also held that the assessee's request for applying Section 37 is also incorrect. The expenses of technical know-how is covered by the provision of Section 35AB of the Act and there would not arise question of applicability of provision of Section 37 of the Act and accordingly, such technical know-how is added to the total income of assessee.

(3.) The same was challenged before the Commissioner of Income Tax (Appeals). The CIT(A) confirmed the view of the Assessing Officer by holding thus: --