TaxTMI 
TaxTMI 
2015 (2) TMI 620
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....peals issue involved is identical and the grounds of appeal also reads the same. The grounds of appeal in ITA No. 2315/Del/12 is reproduced as under:- " 1. On the facts and in the circumstances of the case, the CIT(A) has erred in law and on facts in quashing the assessment initiated u/s 153C of the Income tax Act, 1961 by holding that there is nothing incriminating in the seized documents which can lead to forming of the satisfaction on the part of the Assessing Officer to initiate proceeding u/s 153C. 2. On the facts and in the circumstances of the case ,the CIT(A)has not correctly interpreted the provisions of Section 153C r.w.s 153A of the Income tax Act, 1961. 3. On the facts and in the circumstances of the case, the CIT(A) ha....
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.... request was made by the appellant for the same, on receipt of notice u/s 153C by the assessee. I have carefully gone through the satisfaction note recorded in the case of the appellant, in which reference to the various annexures which includes Balance Sheet, P & L Account and Audited Accounts of the appellant company has been made. In fact as submitted by the appellant many of the se pages as referred in the above satisfaction note do not relate to the appellant but belong to other group concerns. In view of the above facts all these documents which partly belong to the appellant, are apparently reflecting it's audited accounts based on which the returns of income have been filed by the appellant on earlier occasion. Thus there is noth....
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....sement expenses for Rs. 40,22,736/- (this is 1/5th of the total expense of Rs. 2,01,13,684/- spent on advertisement by the appellant of it's new product Joie Agarbatti and Incense Stick in FY 2000-01)was not justified to be allowed as this expenditure should have been incurred by the assessee's (Parties) who have entered brand lease agreement with the appellant firm. The reason being that when the assessee is entitled to a fixed percentage of turnover there is no apparent reason why the appellant should incur such expenditure on advertisement which is about 73% of the royalty receipts (Rs.54,63,571/-) in the year under consideration. The AO is of the view that the reason for booking the above advertisement expenses in case of the assessee f....
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.... agreement dated 19/1/2004 which it had entered with M/s Flakes and Flavourz. It has been submitted that in both these agreements the "Trade Mark and Copyright License" between the appellant and these parties is with regard to providing technical knowhow, experience and expertise in selecting curing, maturing, processing, blending and formulating, chewing tobacco mouth freshener, kiwam and pan chatni. The argument being made by the appellant is thus that there was no trade mark/copy right agreement between the appellant and the parties from whom the royalty has been received during the year with reference to user of the trade mark/copy right license in case of Joie Agarbatti. Thus the appellant has argued that there did not arise question o....
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....result the disallowance made for Rs. 39,82,509/- in case of the appellant is directed to be deleted as no evidence has been brought on record by the AO that the said firms M/s S Gopal & Co. and M/s Flakes and Flavourz were engaged in the manufacturing of Joie brand of incense sticks." 3. At the outset of hearing the Ld. AR submitted that this issue is covered in favour of the assessee by a decision of Hon'ble ITAT in the case of ACIT Vs. M/s Therapeutic India (P) Ltd. in ITA 4194 & 4195/Del/12 A.Y 2006-07 & 2007-08 dated 31st May 2013. The relevant para of this I.T.A.T is reproduced below:- "7. The Ld. AR, on the other hand, submitted that no satisfaction was recorded by the AO and even copy of seized documents was not provided. Relyi....