2012 (9) TMI 1187 - AT - Income Tax

Summary

Issues involved: The judgment involves appeals filed by Revenue challenging orders of CIT(Appeals) for the assessment years 2005-06, 2006-07, 2007-08, and 2008-09 under sec.143(3) of the Income Tax Act, 1961.

ITA No.895/Mds/2012 A.Y. 2005-06:
The Revenue challenged the deletion of depreciation on technical know-how acquired in previous financial years. The CIT(A) relied on ITAT's order in the assessee's own case for the AY 2002-03. The Revenue contended that the appeal to the High Court was pending, and the order should be set aside.

ITA No.896/Mds/20012 - A.Y. 2006-07:
The Revenue disputed the deletion of disallowance under sec. 80IA and depreciation on technical know-how. The CIT(A) also deleted an addition related to Coke Oven project expenses, which the Revenue argued should be considered capital expenditure. The CIT(A) relied on ITAT's orders in the assessee's own case, and the Revenue's appeals were pending before the High Court.

ITA No.897/Mds/20012 - A.Y. 2007-08:
Similar to previous years, the Revenue contested the deletion of depreciation on technical know-how. The CIT(A) relied on ITAT's orders in the assessee's own case, and the Revenue's appeals were pending before the High Court.

ITA No.894/Mds/20012 - A.Y. 2008-09:
The Revenue challenged the deletion of bad debts and treatment of royalty expenditure as revenue expenditure. The CIT(A) directed the Assessing Officer to treat royalty expenditure as revenue expenditure, contrary to the Revenue's stance that it should be considered capital expenditure. The CIT(A) also allowed derivative losses, which the Revenue disputed. The Revenue's appeals were pending before the High Court.

The Revenue argued that the CIT(A) erred in overturning the Assessing Officer's findings in all cases, while the assessee supported the CIT(A)'s orders citing precedents. The Tribunal noted that most issues were covered by previous decisions of ITAT Chennai in the assessee's favor, except for the Coke Oven project expenses in one case.

The Tribunal upheld the CIT(A)'s orders for most issues but remanded the matter of Coke Oven project expenses for further consideration by the Assessing Officer to verify the details of expenditure provided by the assessee.

In conclusion, ITA Nos.895, 897 & 894/Mds/2012 were dismissed, and ITA No.896/Mds/2012 was partly allowed for statistical purposes.