9911796707
TMI Blog2022 (8) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel ORDER 1. This is an appeal by the Assessee against an order dated 17th August 2005 passed by the Income Tax Appellate Tribunal, Cuttack Bench, Cuttack (Tribunal) in Income Tax Appeal for the assessment year (AY) 1991-92. 2. While admitting the present appeal on 5th November 2012, the following questions were framed for consideration by this Court: "(a) Whether and in any event, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits was at a time when commercial production had not yet commenced. Admittedly, the interest was from short term deposits made by the Assessee out of the borrowed capital. 4. The question is no longer res integra. A similar question has in fact been answered in favour of the Assessee by this Court by its judgment dated 17th November 2011 in M/s. Neelachal Ispat Nigam Limited v. Assistant Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Commissioner of Income Tax v. Bright Automotives and Plastics Ltd. [2005] 273 ITR 60. 6. In the present case, the deduction is sought of 1/6th of the expenditure on acquiring the know-how. It has been disallowed only because in the previous year in question, the manufacturing activity of the Assessee had not commenced. As explained by the Madhya Pradesh High Court in the aforementioned de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of money consideration an assessee is able to use the know-how to run his business then in such event, the requirement of section 35AB stands satisfied. Merely because actual title is not passed in favour of the assessee yet if an assessee is able to use effectively his business with the aid of know-how obtained by him pursuant to an agreement on payment of consideration then in our opin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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