The assessee incurred expenditure for acquiring technical advice, assistance and information for running the business and to produce more products and to run the business more efficiently. Before the Assessing Officer, the assessee produced the separate terms of agreement for providing such know-how, showing that the same would be valid for a period of five years from the date of commencement of the regular production. The assessee claimed that the expenditure was revenue in nature. The Tribunal upheld this claim. Dismissing the appeal of the revenue the Court held that ,  clause (ii) of section 32(1) merely granted depreciation on the listed intangible assets, in the absence of which, the assessee would not be entitled to such depreciation. This provision however, could not be pressed into service to examine whether certain expenditure for acquisition of know-how or similar intangible asset was revenue or capital expenditure.