2023 (5) TMI 114

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....0 and ITA No.1959/Del/2010 are cross appeals by the revenue and the assessee preferred against the order of the CIT(A)-3, Delhi dated 16.02.2010 pertaining to A.Y.2006-07. 3. All these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity. 4. The assessee is aggrieved by the decision of the lower authorities in holding that the royalty payment of Rs.4.25 crores and the sub license income of Rs.1.96 crores pertains to Jammu Unit. The revenue is aggrieved by the direction of the CIT(A) to exclude only the net expenditure on royalty from the total profit of the eligible unit for the purpose of allowing deduction u/s. 80IB of the Act. 5. This is not the first round of litigation. I....

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....porate Office. 22. In view of the aforesaid finding in the appeal filed by the Assessee, the Tribunal did not decide the cross appeal filed by the Revenue challenging order passed by Commissioner of Income Tax (Appeals), allowing netting of royalty received from royalty paid for computation of deduction under Section 80-IB of the Act. As we have remanded the issue of deduction under Section 80-IB, it will be open to the Assessee to press their cross appeal before the Tribunal in case of an adverse finding against the assessee on the first issue. 23. The substantial questions of law are accordingly answered partly in favour of the Revenue and against the respondent4 assessee. We have not given and expressed any firm opinion....

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....ted was only for Jammu Unit. 10. Secondly the assessee has been consistently taking a stand that it never exploited the technology at any of its manufacturing Units and has not manufactured the goods exploiting the technology at any of its units. 11. This factual contention of the assessee was never examined by the lower authorities at any stage nor relevant documentary evidences were considered. 12. The excise details which are available from pages 120 onwards have been duly considered by us and in particular the excise reference of Jammu Unit showing packing materials sold by Jammu Unit. On perusal of the evidences we find that only packing materials in roll forms were sold similarly excise reference of Malanpur Unit show packing....