| COURT: | Bombay High Court |
| CORAM: | M. S. Sanklecha J, Sandeep K. Shinde J |
| SECTION(S): | 35AB, 37(1) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | capital vs. revenue expenditure, technical knowhow |
| COUNSEL: | Aarti Sathe |
| DATE: | April 27, 2018 (Date of pronouncement) |
| DATE: | April 30, 2018 (Date of publication) |
| AY: | 1986-87 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 35AB: Question whether the term "acquiring know-how" means acquiring on ownership basis or on lease and whether deduction can be allowed u/s 37(1) for revenue expenditure explained. Judgements in Anil Starch Products 232 TM 129 and Diffusion Engineers 376 ITR 487 (Kar) (based on Swaraj Engines 301 ITR 284 (SC)) dissented from | |
Therefore, the reliance by the Gujarat High Court in Anil Starch Products Ltd. (supra) and Sayaji Industries Ltd.(supra) and Karnataka High Court in Diffusion Engineers Ltd. (supra) on the basis of the Apex Court decision in Swaraj Industries Ltd. (supra) to hold that all expenditure which is revenue in nature would not fall under section 35AB of the Act and would have necessarily to fall under Section 37 of the Act to our mind is not warranted by the decision of the Apex Court in Swaraj Engines Ltd. (SC)
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