High Court Karnataka High Court

Commissioner Of Income-Tax vs N.G.E.F. Ltd. (No. 2) on 9 January, 1991

Karnataka High Court
Commissioner Of Income-Tax vs N.G.E.F. Ltd. (No. 2) on 9 January, 1991
Equivalent citations: 1992 195 ITR 360 KAR, 1992 195 ITR 360 Karn
Author: K S Bhat
Bench: K S Bhat, R Ramakrishna


JUDGMENT

K. Shivashankar Bhat, J.

1. The following two questions are referred for our answer under the provision of the Income-tax Act, 1961 :

“1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in allowing depreciation on roads and culverts ?

2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner of Income-tax (Appeals) who directed the Income-tax Officer to treat the technical know-how payment as a revenue expenditure ?”

3. The first question is covered, against the Revenue, in the decision of this court in CIT v. Bangalore Turf Club Ltd. [1984] 150 ITR 23. The second question is covered, also against the Revenue, in the decision of this court reported in Mysore Kirloskar Ltd. v. CIT [1978] 114 ITR 443 [FB]. Consequently, both the questions are answered in the affirmative and against the Revenue.