JUDGMENT

TULZAPURKAR, J.:— These three appeals relating to assessment years 1966-67, 1968-69 and 1969-70 respectively (the accounting periods in respect whereof ended on 30-9-1965, 30-9-1967 and 30-9-1968 respectively) raise a common question of law for our determination, namely :

Whether on the facts and in the circumstances of the case and on a true interpretation of the collaboration agreements between the assessee and M/s. Metrimpex Hungarian Trading Company, Budapest, the payment of Rs. 1,60,000/- by the assessee to the foreign collaborator was attributable partly or wholly towards the acquisition of a depreciable asset?

2. Briefly stated the facts giving rise to the question are these. M/s. Scientific Engineering House (P) Ltd. (hereinafter called the assessee) manufactures scientific instruments, and apparatus like Dumpy levellers, levelling staves, prismatic compass, etc. It entered into two separate collaboration agreements, one dated 15th March 1961 and the other dated 31st March, 1961 with M/s. Metrimpex Hungarian Trading Company, Budapest for undertaking the manufacture of microscopes and theodolites, under which the said foreign collaborator, in consideration of payment