Case Law Details
DCIT Vs Bajaj Holdings & Investment Ltd. (ITAT Mumbai)
ITAT Mumbai held that technical know-how fee received by the assessee falls under the category of royalty as defined in Section 80-O of the Income Tax Act and hence is eligible for deduction u/s. 80-O of the Income Tax Act, 1961.
Facts- The assessee contended that surplus received on redemption of treasury bills is taxable under the head ‘capital gain’. AO assessed the same under the head ‘income from other sources’.
Further, the assessee claimed the deduction u/s 80-O of the Act. The assessee claimed a deduction u/s 80-O of the Act a sum of Rs.1,96,608/- calculated @ 50% of royalty amount of Rs.3,93,216/- received by the assessee from a Columbian company. The AO rejected the above said claim.
Conclusion- Held that the surplus arising on redemption of treasury bills is held to be taxable under the head Capital gains in the assessee’s own case in AY 1996-97 also. Accordingly, we direct the AO to assess the above said amount as Capital gains in this year also.
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