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TMI Blog2017 (6) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... acquiring technical knowhow for the use for business is granted - Decided in favor of revenue - Tax Appeal No. 45 of 2007 - - - Dated:- 7-6-2017 - Mr. Akil Kureshi And Mr. Biren Vaishnav JJ. For the Appellant : Mr Manish Bhatt With Mr S Mauna M Bhatt, Advocate For the Opponent : Mrs Swati Soparkar, Advocate ORAL JUDGMENT ( PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. This appeal is filed by the Revenue challenging judgement of the Income Tax Appellate Tribunal dated 31.07.2006. Upon hearing counsel for the parties, we feel that there is a need to reframe the question which was framed at the time of admission of the appeal. We accordingly re-frame the question of law for our consideration as under: Whether i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of VBC Industries Ltd. vs. DCIT reported in 48 ITD 292 held that the fact that the business had not started was of no consequence. In the opinion of the Tribunal the essential requirements for applicability of Section 35AB of the Act were that the assessee should have paid amount by way of lumpsum for acquiring technical knowhow, that such technical knowhow should be capable of being used for the purpose of business of the assessee. If these requirements are satisfied the assessee could claim the deductions spread over six years from the year of initial expenditure. In the opinion of the Tribunal, the fact, whether such knowhow was actually put to use or not, was of no consequence. 4. It is in this background that the Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the existing business of manufacturing soap, this Court had made following observations in case of Commissioner of Income Tax vs. Nirma Ltd (supra). 6. Whether the Appellate Tribunal is right in law and on facts in deleting the disallowances of interest from debtors of ₹ 33,63,494/-, Misc. income in respect of Printing charges recovered of ₹ 45,326/- in respect of Kanpur Division, made by AO for the purpose of calculation of deduction under Sections 80I, 80IA 80HH of the IT Act and confirmed by CIT (A) while relying upon its own decisions in the cases of Nirma Ltd. Harjivandas which have not reached finality and without considering the fact that such expenses incurred from the business income only and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting purpose without considering the facts that such expenses were incurred from the business income only and not for earning incomes and hence liable to be excluded? 9. Whether the Appellate Tribunal is right in law and on facts in confirming the order of CIT(A) deleting the disallowances of interest from debtors of ₹ 2,38,97,496/- and ₹ 75,68,786/- made by AO on account of interest from debtors and other sales with respect to profit of Indore Division for the purpose of calculation of deduction under Sections 80I, 80IA 80HH of the IT Act while relying upon its own decisions in the cases of Nirma Ltd. Harjivandas which have not reached finality and without considering the fact that such expenses incurred from the busine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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