2014 (1) TMI 1174

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....682/-. The assessment order u/s. 143(3) of the Income Tax Act, 1961 (herein after referred to as 'the Act') was passed in the case of assessee on 04-10-2006. Re-assessment proceedings were initiated against the assessee and notice u/s.148 of the Act was issued on 23-03-2009. In the reassessment proceedings, addition was made inter-alia on ground of payment of technical fee Rs.27,04,800/- claimed by the assessee as revenue expenditure. The expenditure incurred was towards periodical technical training programme conducted as per technical collaboration agreement. The Assessing Officer held the expenditure incurred as capital in nature and allowed depreciation @25% thereon. Aggrieved against the assessment order dated 30-10-2009 passed u/s.14....

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.... the Assessing Officer. In order to support his contentions, the ld. DR relied on the following judgments:    i. CIT Vs. Polyformalin (P) Ltd., reported as 161 ITR 36 (Kerala)    ii. Fenner Woodroffe & Co. Ltd., Vs. CIT reported as 102 ITR 665 (Mad) 4. On the other hand, Shri S. Raghunathan, Advocate appearing on behalf of the assessee submitted that the order of the CIT(Appeals) is well reasoned and requires no interference. The ld. Counsel placed on record a copy of Technical License Agreement dated 1st May 2003 between Hyundum Industrial Company Ltd., Korea (herein after referred to as 'the Korean Company) and the assessee. The ld. Counsel referred to Article-4 of the agreement which deals with the Technical Assist....