Assessee made payment of royalty to said company for securing a license to use all necessary technical know-how and other technical information in respect of manufacture of products listed in said agreement. AO held that the said expenditure is capital in nature. CIT(A) deleted the addition. On appeal by the revenue the tribunal held that since the assessee was already engaged in manufacturing of cars and spare parts and payments towards royalty/technical know-how were not towards setting up of manufacturing facility, said payments were revenue in nature. (AY. 2009-10)