COMMISSIONER OF INCOME TAX Vs. SWARAJ ENGINES LTD.

JUDGEMENT

(1.) ASST . yr. 1991 -92 in ITA No. 1443/Chd/ 1994 [reported as Dy. CIT vs. Swaraj Engines Ltd. (2004) 91 TTJ (Chd) 671 - - Ed.] was admitted for consideration of the following substantial question of law:

(2.) WE have heard Shri Yogesh Putney, advocate for the Revenue and Shri P.C. Jain, advocate for the respondent and with their assistance have gone through the orders on record.

(3.) OF Rs. 6,07,103, wherein the assessee claimed deduction for an amount of Rs. 26,65,340 paid by it to M/s Kirloskar Oil for the manufacture of diesel engines. The AO was of the view that the expenditure on account of acquisition of technical know -how was covered under s. 35AB of the IT Act, 1961 (hereinafter as 'the Act') and the same could not be treated as 1994 submitted as under :