Judgment

S.K. Das, J. : This is an appeal with special leave from an order dated May 29 1956 passed by the Income-tax Appellate Tribunal (Calcutta Bench), Calcutta, disallowing the assessee s claim for deducting a sum of Rupees 1,24,199 odd under the provisions of Section 10(2)(xv) of the Indian Income-tax Act, 1922.

2. The assessee, appellant before us, is a public limited company with its registered office in Calcutta. Its principal business is the manufacture of aluminium ingots, sheets, circles, aluminium alloys, etc, and production of various aluminium or alloy products. Under a deed of agreement dated January 31, 1947 made with the appellant, the Aluminium Laboratories Ltd., Montreal, Canada, a foreign company, having laboratories and research facilities in Canada and United Kingdom, agreed in consideration of an annual retainer fee to provide regularly and diligently technical and engineering informations, advice, and service, etc. to the appellant on the basis of research carried on in their laboratories. The case of the appellant was that such technical and engineering informations, etc. were essential for the maintenance of the standard of its products on a par with those