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Antifriction Bearings Corporation ... vs Commissioner Of Income-Tax, Bombay ... on 16 November, 1977
cites
Commissioner Of Income-Tax, Bombay vs Ciba Of India Ltd on 15 December, 1967
15. The salient features which have been culled out by the Supreme Court to indicate that the Swiss company had not sold any processes to the Indian company are also present in out case except the fact that the agreement in question is concerned only with royalty and not with expenses incurred in respect of research. The terms of the agreement would, therefor, disclose that when the know-how was being provided in a restricted manner for a reestricted use to the comapny for a period of 10 years, the Austrian company was not absolutely transferring anything to the assessee and on the ratio of the decision of the Supremem Court in Ciba Company's case [1968] 69 ITR 692, it is clear that the payment of royalty had to be treated as revenue expenditure. The Tribuanl was, therefore, in error in splitting up the amount of Rs. 1,35,343 and attributing 50% thereof towards acquisition of a capital asset. In view of the decission of the Supreme Court, which, in our view, squarely governs the present case, it will not be possible to acccept the argument on behalf of the revenue that the Tribunal was justified in splitting up the payment of royalty.
Sayaji Iron & Engineering Works Pvt. ... vs Commissioner Of Income-Tax, Gujarat Ii on 17 September, 1973
23. Now, apart from the fact that it is not necessary for the purpose of present reference to go into the question as to whether, if a tour is undertaken for the purposes of exploring new methods of manufacturing, designing or proceessing, the expenses so incurred are of a revenue nature. It is difficult for us to appreciate how the fact that if, an addition, the tour is intended for the purpose of purchasing machinery, the balance would tilt in favour of capital expenditure. We might point out that though this decision in Ambika Mills' case [1964] 54 ITR 167 (Guj) was not cited before the Gujarat High Court in the later decision in Sayaji Iron and Engineering Works Pvt. Ltd's case [1974] 96 ITR 240 (Guj), there are certain observations therein which run counter to the observation made by the lerned judges in the Ambika Mill's case [1964] 54 ITR (Guj).
M/S. Dalmia Dadri Cement Co. Ltd vs The Commissioner Of Income-Tax(And ... on 28 April, 1958
22. The other decision is that of the Gujarat High Court in Ambika Mills Ltd. Commissioner of Income-tax [1964] 54 ITR 167. That decision also dealt with expenditure incurred on account of travelling abroad. The object of the tour in that case undertaken by the director and the superintendent of the company's mills was found to be to replace the old, out of date and absolete machinery used in the textile mills of the assessee-company by the more modern ones and therefore, the Tribunal had taken the view that the expenditure incurred related to the fixed framework of the profit-making apparatus of the assessee-company and not to the co-ordination of business and, was, therefore, capital expenditure. The conclusion of the Division Bench of the Gujarat High Court is to be found in the last but one paragraph of the judgment, which reads as follwos. (page 188) :
Section 256 in The Income Tax Act, 1961 [Entire Act]
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