Case Law Details
Ms. Standard Batteries Ltd. Vs CIT (Bombay High Court)
1. Section 35AB(1) : Obtaining of technical knowhow under a license would also amount to acquiring knowhow
The word “acquisition” as defined in the larger sense even in the Oxford Dictionary referred to above, would cover the use of technical knowledge knowhow by the applicant assessee which was made available by M/s. Oldham Batteries Ltd. Reliance placed by the applicant upon the decision of the Full Bench of this Court in Smt. Radhabai Vs. State of Maharashtra & Ors. AIR 1970 (Bom) 232 (FB) was in the context of the use of the word “acquisition” with the words “partition”. Therefore, in a completely different context and does not in terms decide the meaning of the word “acquisition” to be universally adopted.
Thus, no support can be drawn by the applicant from the above case. Thus, the restricted meaning of the word ‘acquisition’ to mean ‘only obtaining rights on ownership’ is not the plain meaning in English language. Thus, obtaining of technical knowhow under a license would also amount to acquiring knowhow as the words ‘on ownership basis’ is completely absent in Section 35AB(1) of the Act.
Therefore, accepting the contention of the applicant, would necessarily lead to adding the words ‘by ownership’ after the word ‘acquiring’ in Section 35AB(1) of the Act. This is not permitted while interpreting a fiscal statute. Thus, the second submission made on behalf of the applicant is also not sustainable.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
