2014 (9) TMI 1220 - HC - Income Tax

Royalty paid to the foreign companies - Disallowance u/s 40A - royalty was excessive or unreasonable - DTAA between the Indian Government and the Switzerland Government - Whether expenditure was neither excessive nor unreasonable the same could not be disallowed u/s 40 A (2)? - burden as a justifiable and reasonable business expenditure and thus should be allowed under Section 37 - HELD THAT - We dismiss the appeal following the reasoning and ratio of the decision in Nestle India Ltd. 2011 (5) TMI 566 - DELHI HIGH COURT .

Summary

The High Court of Delhi allowed exemption in C.M No.14228/2014, subject to exceptions. The application was disposed of. In ITA 532/2014, the appeal for the assessment year 2008-09 was dismissed following a previous decision in ITA 662/05 Commissioner of Income Tax vs. Nestle India Ltd. The revenue had filed an SLP before the Supreme Court against the decision dated 11.05.2011.