2008 (5) TMI 631 - DELHI HIGH COURT

Whether the Income-tax Appellate Tribunal was correct in law in disallowing sales incentive claimed by the assessee under the incentive scheme which had expired on 30-4-1981 but which continued till 30-6-1981 as having no relevance for the assessment year 1983-84 ?

Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing by way of revenue expenditure the payment of royalty to foreign collaborators ?

Held that:- The assessee has been able to make out a case in its favour particularly in view of the judgment of Gujarat High Court in Saurashtra Cement & Chemical Industries Ltd. v. CIT [1994 (10) TMI 30 - GUJARAT High Court]

Since the agreement was merely an agreement for the right to use the technical know-how the question referred to us in the affirmative and in favour of the assessee and against the revenue