{"id":7600,"date":"2019-10-04T06:43:03","date_gmt":"2019-10-04T06:43:03","guid":{"rendered":"http:\/\/itatonline.org\/digest\/saboo-berlac-laboratories-ltd-v-acit-2019-416-itr-389-phhc\/"},"modified":"2019-10-04T06:43:03","modified_gmt":"2019-10-04T06:43:03","slug":"saboo-berlac-laboratories-ltd-v-acit-2019-416-itr-389-phhc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/saboo-berlac-laboratories-ltd-v-acit-2019-416-itr-389-phhc\/","title":{"rendered":"Saboo Berlac Laboratories Ltd. v. ACIT  (2019)  416 ITR 389 (P&#038;H)(HC)"},"content":{"rendered":"<p>Dismissing the appeal of the assessee the Court held that, the memorandum of understanding with the foreign company resulted in setting up of a new business in the shape of joint venture. It was not merely a transfer of technical know-how, but extended to the level of rendering valuable services including the setting up of a factory. Though the royalty was to be paid over a period of seven years, there was no restriction on the assessee to continue with the manufacture and sale of products thereafter also. The expenditure was incurred at the pre-production stage and hence was capital expenditure.\u00a0 Ratio in Honda Siel Cars (India) Ltd. v. CIT (2017) 395 ITR 713 (SC)\u00a0 is explained. (AY. 1996 -97)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure-Capital or revenue-Royalty  paid as percentage of sales for obtaining technical Know how for setting up new business\u2014Held to be capital expenditure.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7600","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1YA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=7600"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7600\/revisions"}],"predecessor-version":[{"id":7601,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7600\/revisions\/7601"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=7600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=7600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=7600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}