2010 (8) TMI 1146

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.... ORDER PER R.C.SHARMA, AM : This is an appeal filed by the Revenue against the order of CIT(A) dated 16.3.2010 for the AY 2005-06. 2. The only grievance of the Revenue relates to deleting disallowance of royalty payment. 3. At the outset, learned AR placed on record the order of the Tribunal in assessee's own case for the AY 2001-02 and 2002-03, order dated 22.4.2009, wherein action....

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.... the company. The AO disallowed 25% of such royalty payment by observing that it was on capital account. Under similar facts and circumstances for the AY 2001- 02 & 2002-03, against the deletion of disallowance of such 25% of royalty payment, the Tribunal affirmed the order of the CIT(A) after having the following observations:- "4. We have heard the parties and considered the rival submi....

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....be a ground for holding that it was an expenditure on capital account. The judgment of the Hon'ble Supreme Court in the case of Southern Switchgear Ltd. vs. CIT (supra) was for a payment of lump sum amount in connection with setting up of the factory and 25% thereof was held to be capital in nature, and therefore, there was a transfer of ownership of technical information in that case. Therefo....