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TMI Blog1989 (3) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... t was delivered by GOKAL CHAND MITAL J. -Super Steels had been manufacturing wires from the assessment year 1973-74 onwards. To start with, it was manufacturing mild steel and hard bright wires. In the accounting year, which ended on June 30, 1974, relevant to the assessment year 1975-76, it acquired technical know-how to manufacture different types of wires and also to improve its polishing tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd concluded that the expenditure was of revenue nature. They also found that the decisions of the Bombay High Court in CIT v. Caltex Oil Refining (India) Ltd. [1979] 116 ITR 404 and CIT v. Tata Engineering and Locomotive Co. Pvt. Ltd. [1980] 123 ITR 538, supported the assessee's claim. As a result, the appeal was allowed and the deduction was treated as revenue expenditure. On these facts, the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture for obtaining know-how for a running concern can never be said to be capital expenditure for acquiring an asset of enduring nature. For this decision of ours, we find support from the decision of the Calcutta High Court in CIT v. B. N. Elias and Co. (P) Ltd. [1987] 168 ITR 190 and Mysore Kirloskar Ltd.'s case [1978] 114 ITR 443 (Kar) [FB]. On behalf of the Revenue, reliance was sought to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k". There, the assessee himself had considered the expenditure for obtaining the documents constituting "book", as expenditure of a capital nature and claimed depreciation. Hence, the point before us was not considered there. On the other hand, another decision of the Supreme Court in CIT v. Ciba of India Ltd. [1968] 69 ITR 692, which was relied upon by the Full Bench of Karnataka High Court in M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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