TaxTMI 
TaxTMI 
2025 (4) TMI 937
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.... 250 of the Act without granting opportunity of hearing and ignoring (a) The statement of facts as mentioned in the appeal petition filed: (b) During the course of several physical hearings before the then Id. CIT(A)-12 during the period from April 2017 to February, 2019, various papers, documents and submissions made during the course of the hearings; (c) Letters written/notes/charts submitted from time to time in connection with the said appeal hearings; (d) Letter dated 31 August 2020 submitted in response to notice dated 24 August 2020 together with Gist of submissions made till then. 2 The Ld. CIT Appeals) in the facts and circumstances of the case and in law ought to have passed appellate order after considering the above and the Ld. CIT (Appeal) and hence the appellate order passed by him ignoring the same is illegal and bad-in-law. 3. The Ld. CIT(Appeals) in the facts and circumstances of the case and in law grossly erred in: (a) Summarily dismissing the appeal petition filed by the appellant without mentioning proper reasons and justification; (b) not holding that the appellant acquired the "intangible....
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....eering, energy, etc. Assessee also engages itself in identifying technology licensing opportunities to address business innovation and technological needs of its various customers/clients. In this pursuit, assessee partnered with one such group to license their technologies and IPRs to its customers. 4.1. Assessee entered into an agreement on 28.07.2011 for rendering its services to EADS Deutschland GmbH, a company incorporated in the state of Federal Republic Germany and EADS, France SAS, a company incorporated under the laws of France (hereinafter referred to as EADS) in connection with their business of offering IPRs possessed by them. Under the said agreement, assessee is appointed as "Global Intellectual Property and Technology Consultancy Services Company". Assessee shall provide commercialisation services across the globe for the underlying IPRs for technologies to industries globally including "aerospace", "defence sector" and "shared sector" as defined in the said agreement. In terms of this agreement, assessee is entrusted with the commercialisation services as stated hereunder: "All technology licensing support services including but not limited to technology....
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....us corporates and others across the globe which are available to the assessee up to 31.12.2021, i.e., for a period of 10 years and 5 months from the date of entering of the said agreement. Assessee, thus by resorting to the definition of "Capital Asset" u/s. 2(14) classified the right acquired by it under the agreement as the "Commercial Rights" falling within the expression "Assets" as explained in Explanation 3 to Section 32 of the Act, whereby interalia "Assets" shall mean "intangible assets, being know how, patents, copy rights, trade marks, licences, franchises or any other business or commercial rights of similar nature, not being goodwill of a business or profession". 4.5. Assessee reported this transaction in its audited financial statements by way of an addition to fixed assets during the year under the nomenclature "Intangible Fixed Assets - rights under agreement" at Rs. 12,58,87,000/-. This is reflected in "Note No.11 - Fixed Assets" forming part of the audited balance sheet for the year ended as on 31.03.2012, placed in the paper book at page - 26. On these rights under agreement identified as intangible fixed asset, assessee claimed depreciation at the rate of 25% ....
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....reement and paying part of consideration as per the specified terms and conditions. 6. Aggrieved, assessee went in appeal before the ld. CIT(A) who summarily disposed the contentions raised by the assessee, upholding the disallowance made by the ld. Assessing Officer. The observations and findings of the ld. CIT(A) on this issue as contained in para 2 are extracted below: 2. The ground no. 283 is against disallowing depreciation and not allowing Rs. 12 Crore incurred in acquiring intangible assets as revenue expenditure. The assessee contention is wrong. The assessee has submitted in own admission that this is a signing amount to obtain the commercial rights and as per agreement payments for the same has to be made upto December 2013, and by paying this agreement signing fees the assessee company has secured its commission in subsequent year. Mere signing a legal document is not sufficient for acquiring any rights therein as in the payment schedule it clearly mentioned that in case of failure for making payment the agreement will terminate. The agreement may be called as "Agreement for services related to Support of Licensing activity" clearly speaks that this is an agr....
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.... Sales 2013/ETL/05 1,226,623 31/12/2013 To INTERNATIONAL SALES Sales 2013/ETL/06 96,030 31/03/2014 To INTERNATIONAL SALES Sales 2013/ETL/07 715,391 31/03/2014 To INTERNATIONAL SALES Sales 2013/ETL/08 4,248,741 8,908,502 For F.Y 2014-2015 :- 30/06/2014 To INTERNATIONAL SALES Sales 2014/ETL/01 605,346 30/06/2014 To INTERNATIONAL SALES Sales 2014/ETL/02 184,523 30/06/2014 To INTERNATIONAL SALES Sales 2014/ETL/03 338,607 30/06/2014 To INTERNATIONAL SALES Sales 2014/ETL/04 482,219 01/03/2015 To INTERNATIONAL SALES Sales 2014/ETL/05 584,118 12/03/2015 To INTERNATIONAL SALES Sales 2014/ETL/06 35,613,000 31/03/2015 To INTERNATIONAL SALES Sales 2014/ETL/07 151,898 31/03/2015 To INTERNATIONAL SALES Sales 2014/ETL/08 648,096 38,607,805 For FAY 2015-2016:- 31/03/2016 To INTERNATIONAL SALES Sales 2015/ETL/01 532,202 31/03/2016 To INTE....