| Case ID |
0fc9c4ac-ecd6-4b04-88df-7947303b6579 |
| Body |
View case body. Login to View |
| Case Number |
C.A. NO. 4424 OF 1999 |
| Decision Date |
Aug 09, 1999 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled in favor of the petitioner, allowing the appeal and directing the Tribunal to refer the question of law regarding the deduction of payment for technical know-how as revenue expenditure under the Income Tax Act, 1961. The Court acknowledged that a substantial question of law arose from the Tribunal's order, affirming the Tribunal's decision that the payment amounting to Rs. 72,91,580 is an allowable deduction. This decision reinforces the principles surrounding business expenditures under the Income Tax Act, emphasizing the importance of understanding what constitutes allowable deductions in tax matters. |
| Summary |
This case revolves around the interpretation of allowable business expenditures under the Income Tax Act, 1961, specifically regarding payments for technical know-how. The Supreme Court's decision highlights the legal framework governing deductions and clarifies the conditions under which such payments can be classified as revenue expenditure. The ruling is significant for tax law practitioners and businesses seeking clarity on the implications of technical payments on their tax liabilities. The Court's affirmation of the Tribunal's order serves as a precedent for similar cases, emphasizing the need for proper legal advice in navigating tax obligations. Keywords such as 'Income Tax Act', 'allowable deductions', 'business expenditure', and 'technical know-how' resonate within current discussions in tax law, making this case a valuable reference for both legal experts and businesses alike. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income Tax,
Krupp Industries India Ltd
|
| Judges |
B.N. KIRPAL,
S. RAJENDRA BABU
|
| Lawyers |
M.L. Verma,
Ranbir Chandra,
S.D. Sharma,
S.K. Dwivedi,
C.S. Aggarwal,
B.V. Desai,
Siddharth Choudhary
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Krupp Industries India Ltd
|
| Citations |
2001 SLD 2269,
(2001) 83 TAX 166,
(2000) 243 ITR 6
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
37(1),
256
|