2010 (6) TMI 647

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....77 and reservations assessment fees of Rs. 14,37,831 received by the assessee are in the nature of reimbursement of expenditure incurred by it and the same accordingly are not taxable as "royalty" or "fees for technical services". 2. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that the relief on the issue involved in this appeal was given by the ld. CIT(A) to the assessee relying on the decision of the Tribunal in assessee's own case for assessment year 1997-98 rendered vide its order dated 12-5-2006 in ITA No. 4341/Mum./02. In para 7 of the said order, a similar issue was decided by the Tribunal in favour of the assessee which is reproduced below : "We find that the a....

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....ight of these discussions, we are of the considered opinion that the CIT(A) was indeed not justified in holding that the amount of Rs. 4,80,876 received by the assessee as marketing contribution was taxable in the hands of the assessee. We direct he Assessing Officer to delete the addition. The assessee gets relief accordingly." 3. As brought to our notice during the course of hearing, a similar issue again came up for consideration in the case of the assessee for assessment year 1998-99, 1999-2000 and 2001-02 and vide its common order dated 8-5-2007 passed in ITA Nos. 6684/Mum./04, 8479/Mum./04 and 8480/Mum./04, the said issue was restored by the Tribunal to the file of the Assessing Officer with certain direction for the following reas....

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....ear finding whether the marketing contribution and reservation assessment fees are to be treated as Royalty under section 12(4) of the DTAA between India and USA." 4. Although the learned counsel for the assessee has contended before us that the aspect which has been taken into account by the Tribunal while restoring the matter to the file of the Assessing Officer for re-consideration in assessment year 1998-99, 1999-2000 and 2001-02 is not relevant to ascertain the nature and character of the amounts in question received by the assessee, it is observed that the said aspect has already been found to be relevant by the Tribunal having a bearing on the issue. Moreover, the said order has been passed by the Tribunal for the immediately prec....