TaxTMI 
TaxTMI 
2015 (1) TMI 104
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....and on facts in confirming the order passed by the CIT(A) deleting the disallowance of Rs. 2,90,602/- made under the provision of Section 35A?" 2. The Assessing Officer during the assessment proceedings noted that the assessee had claimed a sum of Rs. 2,90,602/- as royalty payment made to M/s. Parle (Export) Pvt. Ltd for use of their trade mark 'Bisleri'. The Assessing Officer on such basis held that the payment was for the acquisition of 'patent right' and therefore he restricted the allowance to 1/4th of the total claim of Rs. 2,90,602/- u/s 35A. On appeal, the CIT(A) deleted the disallowance on account of royalty. The revenue appealed before the Tribunal. The Tribunal upheld the findings of the CIT(A) and confirmed the order. 2.1 The T....
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....d before the commencement of the business, the fourteen previous years beginning with the previous year in which the business commenced: Provided that where the rights commenced, that is to say, became effective, in any year prior to the previous year in which expenditure on the acquisition thereof was incurred by the assessee, this clause shall have effect with the substitution for the reference to fourteen years of a reference to fourteen years less the number of complete years which, when the rights are acquired by the assessee, have elapsed since the commencement thereof, and if fourteen years have elapsed as aforesaid, of a reference to one year; (ii) " appropriate fraction" means the f....
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....nce between the cost of acquisition of the rights and the amount of such cost remaining unallowed shall be chargeable to income- tax as income of the business of the previous year in which the whole or any part of the rights is sold. Explanation.- Where the whole or any part of the rights is sold in a previous year in which the business is no longer in existence, the provisions of this sub- section shall apply as if the business is in existence in that previous year. (5) Where a part of the rights is sold and subsection (4) does not apply, the amount of the deduction to be allowed under sub- section (1) shall be arrived at by- (a) subtracting the proceeds of the sale (so far as they consist of capital sums) f....