2013 (5) TMI 1006 - HC - Income Tax

Summary

Issues involved: The judgment involves the following issues:
1. Deletion of addition on account of technical know-how and royalty paid by the assessee to Honda Motor Co. Ltd.
2. Dealing with the addition under Section 43B of the Income-tax Act, 1961.
3. Deletion of addition on account of provisions for warranty and sales services.
4. Deletion of addition of export commission paid to Honda Motor Co. Japan.
5. Deletion of disallowance made by the AO on cost of air tickets and other travel expenses for foreign technicians.

Deletion of addition on account of technical know-how and royalty paid by the assessee to Honda Motor Co. Ltd.: The Income Tax Appellate Tribunal was questioned on the correctness in law and facts regarding the deletion of the addition on account of technical know-how and royalty paid by the assessee to Honda Motor Co. Ltd. The issue was considered as a substantial question of law. The Tribunal's decision was challenged, and the matter was admitted for further consideration.

Dealing with the addition under Section 43B of the Income-tax Act, 1961: The Income Tax Appellate Tribunal's decision on the addition under Section 43B of the Income-tax Act, 1961 was discussed. It was noted that this issue was already covered in favor of the respondent/assessee by a previous decision of the Supreme Court. Therefore, this question did not require further consideration.

Deletion of addition on account of provisions for warranty and sales services: The issue of deletion of addition on account of provisions for warranty and sales services was examined. It was observed that this matter was also settled in favor of the assessee by a Supreme Court decision. Hence, this question did not pose any further challenge.

Deletion of addition of export commission paid to Honda Motor Co. Japan: The deletion of the addition of export commission paid to Honda Motor Co. Japan was considered. It was determined that this issue involved pure questions of fact without any legal implications. Therefore, while admitting the appeal, a specific substantial question of law was identified for further consideration.

Deletion of disallowance on travel expenses for foreign technicians: The deletion of disallowance made by the Assessing Officer on the cost of air tickets and other travel expenses for foreign technicians was reviewed. It was found that this issue also pertained to factual matters without any legal question. The appeal was accepted, and a significant legal question was framed for deliberation.

Conclusion: The High Court addressed various issues related to additions and deletions in the assessment of the assessee. Specific legal questions were identified for further consideration, while some matters were deemed settled based on previous judicial decisions. The appeal was admitted for detailed examination, and the parties were given the opportunity to submit additional documents within a specified timeframe.