2022 (7) TMI 60

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....ch are used for paper making, manufacturing and selling of paper machine clothing for pulp, paper and board industry. The assessee filed its return of income for the A.Y. 2016-17 on 30.11.2016 declaring total income of Rs.21,94,03,760/-. The case was selected for scrutiny and thereafter, assessment was framed under section 143(3) of the I.T. Act, 1961 vide order dated 24.12.2018 and the total income of the assessee was determined at Rs.25,54,52,295/-. Aggrieved by the order of the A.O, assessee carried the matter in appeal before the Ld. CIT(A) who vide order dated 31.03.2019 in Appeal No.10666/2018-19 allowed the appeal of the assessee. 3. Aggrieved by the order of the Ld. CIT(A), the Revenue is now in appeal before the Tribunal by raisin....

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....hat assessee had entered into a "Technical Know-How Agreement" with M/s. Voith Paper Fabrics GmbH & Co. KG, a company incorporated under the laws of Germany, whereby it provided know-how and technical assistance to the assessee for the manufacture of paper maker felts, paper and other industrial fabrics. As per the agreement assessee was required to pay to Voith Paper Fabrics GmbH for technical assistance and know-how, royalty @ 5% of the net export sale price. A.O. noted that the expenses incurred in the form of royalty was termed as "Technical Know-How Fees" in the P & L A/c and was claimed as deductible expenditure. A.O. was of the view that the expenditure in question was in relation to carrying on of the business of the assessee for ru....

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.... D.R. strongly supported the order of the A.O. 10. The Learned Authorized Representative, on the other hand, supported the order of the Ld. CIT(A) and further submitted that the issue has already been decided by CIT(A) in its favour and apart from the decisions of the Tribunal in assessee's own case, on identical facts, the issue has also been decided in favour of the assessee by Hon'ble Punjab & Haryana High Court in the case of CIT vs., Super Steels reported in [1989] 178 ITR 637 [P & H]. He, therefore, supported the order of the Ld. CIT(A). 11. We have heard the rival submissions and perused the material available on record. The issue in the present case is with respect to deletion of addition of Rs.3,60,48,535/-. We find that A.O. had....