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TMI Blog2009 (8) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... of the business of the assessee with a view to get latest technology know-how of mopeds from Honda Motors Company Limited. In such a situation, the expenses incurred had nexus with the existing business of the assessee – order of ITAT upheld deleting the allowing the deduction - 88 of 1998 - - - Dated:- 17-8-2009 - ADARSH KUMAR GOEL and DAYA CHAUDHARY, JJ. Mr. Krishan Mehta, Advocate for the appellant. Mr. Animesh Sharma, Advocate for the respondent. ADARSH KUMAR GOEL, J. (Oral) - The Income Tax Appellate Tribunal, Chandigarh Bench has referred following question of law arising out of its order dated 18.9.1996 passed in ITA No. 1769/Chandi/90 for assessment year 1984-85 for opinion of this Court:- "Whether, on the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company manufactured Mopeds. In order to expand its business, it entered into negotiations with Honda Motors Co. Ltd., Japan, who desired that the assessee should first stop production of Mopeds. The company was very much interested in getting the latest technical know-how of manufacturing Mopeds from Honda Motors Co. Ltd., who insisted on equity participation and in the financial management. The assessee-company, however, did not go ahead with that expansion programme, but it subsequently succeeded in getting the technical know-how from that company on payment of lesser amount. The assessee had also entered into collaboration with another foreign company for manufacturing of new series of mopeds. The assessee placed reliance on the cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also the case law cited supra. On entirety of facts and circumstances of the case, we are of the view that the expenses mentioned in grounds Nos. 6 to 8 are allowable as of revenue nature. We hold accordingly. Grounds thus succeed." 3. We have heard learned counsel for the parties. 4. A reference to the finding of the Tribunal shows that the expenses had been incurred in the course of the business of the assessee with a view to get latest technology know-how of mopeds from Honda Motors Company Limited. In such a situation, the expenses incurred had nexus with the existing business of the assessee. Question referred is basically of fact. 5. In view of finding of the Tribunal, the question is answered against the revenue and in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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