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It appears that the appellant has acquired sublicense for using Monsanto technology and such sublicense is non transferable. Such license is provided to the assessee to test produce and sell genetically modified hybrid cotton plant seeds in the territory of the appellant for effectively increasing its business; no asset, however, is created. While holding such expenses as revenue expenditure the Ld. CIT(A) relied upon the judgment passed by the Hon'ble Delhi High Court in the matter of CIT vs. J K Synthetic Ltd. reported at309 ITR 371wherein it was held that since under the agreement the assessee has obtained a technical assistance and acquired some technical information which was a knowhow related to process of manufacture, then it is not a transfer of the ownership of the knowhow and to be treated as revenue expenditure.

Shanti Prime Publication Pvt. Ltd.

Section 37 of Income Tax Act, 1961—Business Expenditure— Assessee obtained a technical assistance and acquired some technical information which was a know-how related to process of manufacture, then it is not a transfer of the ownership of the know-how and to be treated as revenue expenditure.

Facts: Whether the Appellate Tribunal has erred in upholding the order of the CIT(A) for deleting addition of Sub License Free Expenses of Rs. 27,57,500/?”

Held, that Tribunal has relied upon the decision of the Delhi High Court in the case of CIT vs. J K Synthetic Ltd reported in 309 Itr 371, wherein the Delhi High Court has taken the view that no under the agreement the assessee has obtained a technical assistance and acquired some technical information which was a know-how related to process of manufacture, then it is not a transfer of the ownership of the know-how and to be treated as revenue expenditure.We are in complete agreement with the finding recorded by the Tribunal. - PR. CIT V/s WESTERN AGRI SEEDS LTD. - [2020] 424 ITR 244 (GUJ)

It appears that the appellant has acquired sublicense for using Monsanto technology and such sublicense is non transferable. Such license is provided to the assessee to test produce and sell genetically modified hybrid cotton plant seeds in the territory of the appellant for effectively increasing its business; no asset, however, is created. While holding such expenses as revenue expenditure the Ld. CIT(A) relied upon the judgment passed by the Hon'ble Delhi High Court in the matter of CIT vs. J K Synthetic Ltd. reported at309 ITR 371wherein it was held that since under the agreement the assessee has obtained a technical assistance and acquired some technical information which was a knowhow related to process of manufacture, then it is not a transfer of the ownership of the knowhow and to be treated as revenue expenditure.

Shanti Prime Publication Pvt. Ltd.

Facts: Whether the Appellate Tribunal has erred in upholding the order of the CIT(A) for deleting addition of Sub License Free Expenses of Rs. 27,57,500/?”