TaxTMI 
TaxTMI 
2022 (2) TMI 580
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.... admitted the aforesaid tax case appeal on the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the expenditure on Software Technology Park and Non-Software Technology Park, on the basis of gross Profit and not on the basis of turn over is valid in law? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that Intellectual Property rights and Non-Compete fee are intangible assets are entitled to depreciation under Section 32(1)(ii) of the Income Tax Act 1961 is valid?" 3.Today, when the appeal is taken up for consideration, the learned counsel for....
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.... admitted fact that the department had not questioned the accounts of the assessee and the only issue projected by the Revenue is that working of the allocable expenditure based on profit would result in distorted picture. The reasoning of the officer is that the expenditure in STP Unit normally should have been more than the non-STP unit considering the nature or export related activity that the assessee had to undertake and total expenditure claimed in the non-STP unit was 97.23% against the receipts, whereas in the STP unit it worked out to 82.42%. Doubting this alone, the officer adopted a formula to be based on the turnover. The view of the officer is based on conjectures and surmises only and is not based on any materials. We reject t....
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....de mark licence or franchise or any other business. Therefore, it is submitted that this negative right cannot be construed either as a licence or as a commercial right to be eligible for deduction. 21. We are unable to agree with the stand taken by the Revenue for the simple reason that the agreement between the parties is a composite agreement. Under the agreement, the transferor had transferred all its rights, copy rights, trade marks in respect of the word 'pentasoft' as well as the training and development division exclusively to be exploited by the assessee. In order to strengthen those rights transfer under the said composite agreement, there was a non compete clause by virtue of which, the transferor was restrained from using the ....