Technical Know-How Fees Is allowable Revenue Expenditure

ACIT Vs Voith Paper Fabrics India Ltd (ITAT Delhi) Introduction: The recent case of ACIT vs. Voith Paper Fabrics India Ltd came under scrutiny during assessment proceedings, where the Assessing Officer (A.O.) questioned the nature of expenses related to ‘Technical Know-How Fees Royalty.’ The dispute revolves around whether these expenses, debited at Rs.3,60,48,535, should be considered as capital or revenue expenditure. Detailed Analysis: The A.O. argued that the expenses were capital in nature, given the long-term benefits derived by the assessee from a “Technical Know-How A...