2016 (1) TMI 1206

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....plication is accordingly allowed. 3. This appeal by the Revenue is directed against the order dated 23rd November 2012 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 5120/Del/2010 for the Assessment Year ('AY') 2006-07. 4. The following five questions have been urged by the Revenue: (i)Whether on the facts and circumstances, the ITAT was right in law in deleting the addition of Rs. 169 crores made by AO/TPO by treating the royalty (inclusive of technical guidance fee) as revenue expenditure by completely ignoring the fact that this addition was rightly made by treating this expenditure as capital expenditure? (ii) Whether on the facts and circumstances of case, the ITAT was right in restoring back the issue of disallo....

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....in the Assessee's own case in CIT v. Hero Honda Motors [2015] 55 taxmann. com 230 (Del.). As far as Question (ii) is concerned, it is seen that the ITAT has restored the matter to the Assessing Officer ('AO') to rework the disallowance under Section 14A of the Act in the light of the decision of this Court in Maxopp Investment Ltd. v. CIT [2011] 203 Taxman 364. 6. As far as Question (iii) is concerned, in the Assessee's own case for AY 2002-03, this Court by order dated 14th July 2014 in ITA No. 281 of 2014 (CIT-IV v. Hero Honda Motors Ltd.) decided the question in favour of the Assessee and against the Revenue. In the aforementioned decision, reference was made to the decision of the Supreme Court in Rotork Controls India Pvt. Ltd. v. CIT....