Mere right to use licensed technical know-how cannot be treated as Capital Expenditure

Nefab India Pvt. Ltd. Vs DCIT (ITAT Delhi)

The assessee has been merely given a license to use the licensed information/technical know-how during the currency of license agreement. Further, there is a confidentiality clause which prevents the assessee from disclosing the licensed information to a third party. To reiterate, the assessee is not entitled to the use of licensed technical know-how on termination of agreement and is obliged under the contract, to relinquish the advantage accruing by virtue of license agreement. All the above features of the

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