2018 (11) TMI 507

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....64,00,000/- made by AO on account of disallowance of royalty paid. ii) The appellant craves to be allowed to add any fresh ground(s) of appeal and / or delete or amend any of the ground(s) of appeal. 2. The brief facts of the case are that the assessee has filed its return of income digitally on 12.10.2010 declaring a Loss of Rs. 1,07,34,997/- in the computation of income. Thereafter, the assessee has filed its revised return on 12.10.2010 declaring a loss of Rs. 1,07,34,998/-. The return was processed u/s. 143(1) of the Income Tax Act, 1961 (In short "Act"). Notice u/s. 143(2) was served on 27.9.2011 upon the assessee selecting the case of the assessee for scrutiny and questionnaire was served upon it on 12.3.2012 alongwith the notice u....

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....vide his impugned order dated 27.1.2015 has partly allowed the appeal of the assessee and deleted the addition in dispute, after following the decision of his predecessor of preceding year i.e. AY 2008-09 by distinguishing the facts of the present case with the decision of the Hon'ble Supreme Court of India in the case e of Southern Switch Gear Ltd. vs. CIT (Supra). Aggrieved with the impugned order, the Revenue is in appeal before the Tribunal. 3. At the time of hearing, Ld. DR relied upon the order passed by the AO and reiterated the contentions raised by the Revenue in the grounds of appeal and also submitted that the AO has rightly treated the royalty payment of Rs. 1,64,00,000/- as capital expenditure and added back to the total inco....

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.... CIT(A) for the assessment year 2009-10 on the issue of dispute as under:- "4.2 I have carefully considered the facts of the case and the discussion in the assessment order and the submissions of the appellant. I have also gone through the Technical Service and Licence Agreement entered into by the appellant, which provides for the payment of royalty by the appellant from year to year upto a period of ten years at the rate of 3% of the net selling price of the licensed products. There is also provision for termination of the agreement on account of the fault of the licensee i.e. the appellant, or for other reasons given in paras 10.2/10.3. Thus it is evident that royalty has been paid by the appellant not for acquiring any benefit of endu....