TaxTMI 
TaxTMI 
2016 (7) TMI 1694
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....67/- made by Assessing Officer on account of disallowance of Royalty payment?" 2. The brief facts of the case are as under: 2.1 The assessee company is engaged in the business of manufacturing of all kinds of adhesives, sealants, coatings and related products primarily for automotive industry. 2.2 The assessee company filed its return declaring an income of Rs.9,17,79,860/- on 30.09.3009. The case of the assessee was selected for scrutiny and the notices u/s 143(2) and 142(1) of the Act were served upon the assessee. In response, Ld. A.R. appeared from time to time and filed the requisite details. 2.3 The assessee company had claimed royalty expenditure of Rs.1,02,67,156/-, which was taken for consideration as to whether it is capital ....
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.... to be treated as revenue expenditure. Accordingly, the addition made by the AO is deleted. During the course of appellate proceedings assessee has again filed the following photocopies of various certificates amounting to Rs.10,00,000/-, which apparently shows that the appellant has paid donation to SNS Foundation through banking channels: S.No. Receipt No. Date Amount (in Rs.) 1. 17 14.07.2008 2,50,000 2. 15 10.07.2008 2,50,000 3. 38 21.01.2009 2,50,000 4. 53 05.02.2009 2,50,000 The appellant has furnished a copy of the Notification No.248(E) dated 21.01.2009 issued from F.No.270/305/2003 issued by competent authority for approving the project of SNS Foundation as 'eligible project'. Keeping in view the above....
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....e pursuant to the agreement. It has also been observed therein that the royalty payment is a running expenditure incurred by the assessee every year. 5.1 As the Ld. D.R. / Ld. A.O. has not been able to bring out contrary facts, we are in agreement with the submissions of the learned counsel for relating to disallowance of royalty amount is covered in favour of the assessee by the order of the Coordinate Bench of the Tribunal dated 28.09. 2010 (supra) rendered in assessee's own case. In the said order of the Tribunal, Delhi 'C' Bench has followed the decision of Hon'ble Jurisdictional High Court dated 3.09. 2009 in ITA No.837 of 2009 in the case of CIT Vs. Sarda Motor Industrial Ltd. We reproduce the relevant extract of the ....