Payment made under Franchise & Management Agreement for availing technical know-how, coupled with technical consultancy services, for setting-up new and distinct business could be considered as capital expenditure

Ansal Housing & Construction Ltd. Vs DCIT ITAT Delhi (ITA Nos. 3192/Del/08 & 4595/Del/05 Dated- 9 Sept 2011  Assessee had commenced restaurant business during the financial year ending 31.3.2002, relevant to A.Y. 2002-03,. In order to extend the business in the field of hospitality and for operating the restaurant, t entered on 17th August 2000. In terms of that agreement, invoices of Rs. 18,75,195/- were raised by RSW Hotel Management Services Ltd. in the financial year ending 31st March, 2001.  Since the business of restaurant commenced during the financial year ending 31-3-2002,...