Appeal dismissed: Royalty Income not business income. Upheld prior judgment. Tribunal decision confirmed.

The appeal challenging the treatment of Royalty Income as Income from business, when not directly derived from the assessee's business but attributable to it, was dismissed. The court upheld the decision based on a previous judgment involving the same assessee and pending appeal at the Supreme Court, declining to re-examine the settled issues. The court found the Tribunal's order confirming the Royalty Income as Income from business not perverse and dismissed the appeal in favor of the assessee.

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Issues:
1. Whether Royalty Income should be treated as Income from business when not derived from the business carried by the assessee but only attributable to the business of the assessee.
2. Whether the Tribunal's order confirming the CIT(A)'s decision regarding Royalty Income as Income from business is perverse in nature.

Analysis:
1. The appeal filed by the revenue under section 260A of the Income Tax Act, 1961 challenges the order of the Income Tax Appellate Tribunal related to the assessment year 2009-10. The substantial questions of law raised include the treatment of Royalty Income as Income from business when it is not directly derived from the assessee's business but is attributable to it. The learned counsel for the assessee relied on a previous judgment of the court in a similar case involving the same assessee, where the court dismissed the appeal by stating that the substantial questions of law raised were covered by a previous judgment. Therefore, the appeal in question deserves to be dismissed based on the previous decision.

2. The counsel for the revenue attempted to distinguish the judgment in the previous case by referring to various other judgments. However, it is noted that the judgment in the previous case has been appealed before the Supreme Court and is pending consideration. In light of this, the court declined to differ from the previous decision or re-examine the issues already settled. Consequently, the court dismissed the appeal and upheld the treatment of Royalty Income as Income from business in favor of the assessee, based on the previous judgment and pending appeal at the Supreme Court.

This detailed analysis of the judgment provides a comprehensive understanding of the issues raised and the court's decision based on the interpretation of relevant legal provisions and precedents.

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