The Assessing Officer treated expenditure incurred on glow signboards installed at dealers’ premises and sales tools and fixtures supplied to dealers as capital expenditure. The Tribunal held that once the signboards were fixed at the dealers’ premises, the assessee no longer retained ownership over them and the expenditure was incurred wholly for business promotion. Following its earlier orders in the assessee’s own case, the Tribunal held that expenditure on signboards, sales tools and fixtures was allowable as revenue expenditure. The Assessing Officer treated royalty paid to the overseas holding company under the licence and technical know-how agreements as capital expenditure. The Tribunal held that the assessee was already carrying on the business of manufacturing motorcycles and scooters and the royalty was not paid for establishing a new manufacturing facility but for carrying on the existing business. Accordingly, the royalty expenditure was held to be revenue in nature and deductible. The assessee claimed deduction of technical know-how expenditure incurred after commencement of manufacturing operations. The Tribunal, following its earlier decision in the assessee’s own case, held that expenditure incurred for acquiring technical know-how after the manufacturing facility had already been established was revenue in nature, whereas expenditure incurred for setting up the manufacturing facility would be capital. Accordingly, the deduction was allowed.   (AY. 2017-18).