After examining the various clauses in the agreement between the Assessee and the British Oxygen Co. Ltd, the High Court found as follows The English Company did number sell any information, processes and inventions to the Indian Company.
The Indian Company is prohibited from disclosing those informations, processes and inventions during the currency and also after the determination of this agreement in view of its Clause 11.
These appeals are preferred against the judgment of the Calcutta High Court answering the question referred to it in the affirmative, i.e., in favour of the Assessee and against the Revenue.
Under Clause 22 of the agreement the Indian Company is number entitled to use them after the termination of this agreement.
2,97,480/ paid by the assessee to the British Oxygen Co. Ltd., London in pursuance of the agreement dated 1 10 1959 was a permissible deduction under Section 37 1 of the Income Tax Act, 1961 ?
