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 agreement make it unequivocal that what t...