- (1.) Heard learned counsel on both sides. This civil appeal filed by the Department concerns asst. yr. 1993-94.
(2.) The assessee manufactures equipments which are used for mining. It entered into an agreement with an American company on 7th June, 1990. The agreement with the American company called 'licence and technical assistance agreement' under which the American company was required to transfer technical know-how to the assessee for consideration of US $2,25,000 to be paid in three instalments. The first instalment in convertible Indian currency amounting to Rs. 17,49,889 was paid on 29th Nov., 1990. Subsequently, disputes arose between the contracting parties and the know-how was not transferred by the American company.
(3.) The short question which arises for determination is whether the amount of Rs. 17,49,889 could be claimed by the assessee as a deduction under Section 37 of the IT Act 1961;