TaxTMI 
TaxTMI 
2021 (3) TMI 54
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....ne. Assessee filed its return of income for A.Y. 2014-15 on 30.11.2014 declaring total income at Rs. 20,85,99,970/-. The case was selected for scrutiny and thereafter assessment was framed u/s. 143(3) of the Act vide order dated 09.12.2016 and the total income of the assessee was determined at Rs. 23,61,56,953/-. 4. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 06.07.2017 in Appeal No. 10955/2016-17 allowed the appeal of the assessee. Aggrieved by the order of CIT(A), Revenue is now before us and has raised the following grounds of appeals: (i) "Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was right on facts and in law in deleting the addition of Rs. 2,75,56,....
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....now-how and the benefits derived by the assessee was of enduring nature as well as increase in functional capacity of the manpower which ultimately increases the production of the company. He was therefore of the view that the acquisition of know-how was capital expenditure and would fall within the ambit of section 32 of the Act. He further noted that this expenditure was disallowed in the assessment of the assessee for A.Y. 2010-11, 2011-12, 2012-13 & 2013-14 and the facts of the case in the year under consideration are identical to that of the earlier years. He therefore, relying on the aforesaid order of his predecessor held that the expenditure incurred by the assessee on technical know-how fees to be a capital expenditure. He however ....
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....der of Tribunal was relied upon by the Co-ordinate Benches of Tribunal while deciding the appeal for A.Y. 2010-11, 2011-12 & 2012-13. The relevant findings for A.Y. 2009-10 as noted by the Co-ordinate bench while deciding the issue in ITA No. 1196 & 1197/Del/2015 for A.Y. 2010-11 & 2011-12 order dated 07.06.2018 reads as under: 4. We have given thoughtful consideration to the orders of the authorities below qua the issue. We find force in the contention of the ld. counsel for the assessee. We find that identical issues were considered by the Tribunal in ITA Nos. 6603/DEL/2014 and 6923/DEL/2014 for assessment year 2009-10. The relevant finding of the Tribunal reads as under: "16. The 3rd ground in the appeal of the revenue was against th....
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....maker felts and other industrial fabrics. According to the agreement entered into by the assessee the remuneration was paid for at the rate of 5% on the sale price of the product The Ld. CIT(A) has considered the various clauses of the agreement and held that the know-how was to remain the sole and exclusive property of the provider and the appellant company is required to fully exploit the same. Further the technical know-how was also to be Page 7 paid in relation to the sales affected by the assessee company, it Is also required to be noted that assessee is engaged in the same business for which technical know-how is by the assessee and it is not at its an altogether a new line of business which is developed. The Ld. departmental represen....