In Honda Siel Cars India Ltd. v. CIT( 2017 ) 395 ITR 713 (SC) the Court held that , Technical knowhow payment as per the agreement providing for payment of lump-sum consideration in five instalments is held to be capital in nature . Allowing the miscellaneous application the Court held that the assessee is entitle to depreciation.(AY. 1999-2000 to 2005 -06)
Honda Siel Cars India Ltd. v. CIT(2018) 409 ITR 42 /( 2019) 306 CTR 165/ 173 DTR 104/ 260 Taxman 371 (SC) Editorial : Order in Honda Siel Cars India Ltd. v. CIT( 2017 ) 395 ITR 713/ 249 taxman 1 (SC)
S.32: Depreciation- Capital or revenue expenditure -Technical knowhow payment – Agreement providing for payment of lump-sum consideration in five instalments- held to be capital in nature -Allowing the miscellaneous application the Court held that the assessee is entitle to depreciation.[S. 37]