IN  THE  HIGH  COURT  OF  DELHI  AT  NEW  DELHI


                    ITA 58/2002


          COMMISSIONER OF INCOME TAX-III      ..... Appellant.
                                   Through  Mr.Sanjiv Khanna.
                                            Advocate.
                              versus

          SHRIRAM PISTONS & RINGS LTD.        ..... Respondent
                                   Through  Mr.V.P.Gupta.
                                            Advocate.

          CORAM:
          HON'BLE MR. JUSTICE D.K. JAIN
          HON'BLE MS. JUSTICE SHARDA AGGARWAL


                              O R D E R
                             -----------
                            28.08.2002

                 Heard.
                 Admit.
                 The  following  questions of law are framed  for
          adjudication:
          "1.    Whether  the  ITAT   was  right  in
                 holding  that  the  entire  royalty
                 payment made by the assessee to M/s
                 Riken  Corporation,  Japan and  M/s
                 Kilbernschimdt  of West Germany  is
                 revenue expenditure and 25%/no part
                 of  it  can be regarded as  capital
                 expenditure?

          2.     Whether  the ITAT was right in  law
                 in   holding   that    the   entire
                 expenditure   incurred    by    the
                 assessee  on  visits   by   foreign
                 technicians  under    collaboration
                 agreements  is revenue  expenditure
                 and  no part of it/25% of the  said
                 expenditure  cannot be regarded  as
                 capital expenditure?
          3.     Whether  the ITAT was right in  law
                 in  holding  that the  assessee  is
                 entitled  to claim depreciation u/s
                 43A  of the Income Tax Act, 1961 on
                 the  basis exchange rate prevailing
                 on  the last date of financial year
                 though  the due date of payment had
                 not  come  and no payment had  been
                 made?"

                 The appellant shall file within three months ten
          copies  of the cyclostyled paper books, containing  all
          documents  on  which  reliance was  placed  before  the
          Tribunal,  including  any order/orders, either  in  the
          case  of  the assessee itself or in case of  any  other
          assessee, which has been followed by the Tribunal.
                 The  appeal be listed for hearing in the regular
          course.


                                         D.K. JAIN, J




                                         SHARDA AGGARWAL, J
          AUGUST 28, 2002
          'ss'