9911796707
TMI Blog1982 (8) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Appellate Tribunal, Patna Bench ' B ' (hereinafter referred to as " the Tribunal "), has rejected the application of the Revenue under s 256(1) of the Act on the ground that the question of law raised by the Department was merely academic in nature. There was an agreement between the assessee on the one hand and Japanese firm, namely, Yodagawa Steel Works Ltd. on the other. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f revenue because the fund of knowledge which is acquired by a person is utilised for manufacturing process. The fund of knowledge gained by a person from another person cannot be kept idle and it must be pressed into action so that the result of knowledge must come out in the shape of a material thing. The exact position of the above situation is present if clauses 22A and 22B of the agreement ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corded its findings, the Tribunal has applied the principles of law in connection with revenue expenditure vis-a-vis capital expenditure, as laid down by the Supreme Court in the case of CIT v. Ciba of India Ltd. [1968] 69 ITR 692, which principles have been universally followed by both the Supreme Court itself and the various High Courts. In this context, the Tribunal held that the questions of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing from the order of the Tribunal is not imperative to be referred if the principles laid down by the Supreme Court of India have been correctly applied. We think, there is much substance in the submission of Mr. Vyas, learned counsel for the assessee, that in view of the decision of the Supreme Court laid down in [1970] 77 ITR 20 (SC), no statement need be called for under s. 256(2) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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