Law:

Section:

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessment year 1971-72 - Whether amount of technical fee paid under collaboration agreement would be allowable as revenue expenditure - Held, yes FACTS The question for consideration in the instant reference was whether the technical fees paid under the collaboration agreements were of a revenue nature so as to be allowed as deduction in the assessment of the assessee. HELD Following the decision in the case of the same assessee in CIT v. T. Maneklal Mfg. Co. Ltd. [1978] 115 ITR 725 , it was to be held that the technical fees under the collaboration agreements were of a revenue nature so as to be allowed as deduction in the assessment of the assessee. Note : The case has been decided in favour of the assessee. CASE REVIEW CIT v. T. Maneklal Manufacturing Co. Ltd.[1978] 115 ITR 725 (Bom.) followed and relied upon. CASES REFERRED TO CIT v. T. Maneklal Mfg. Co. Ltd. [1978] 115 ITR…

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