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TMI Blog2012 (7) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; For Respondent Mr.Arta Tarana Panda, Advocate CM APPL.11598/2012 Allowed subject to all just exceptions. ITA 397/2012 1. The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 30th September, 2011 whereby its Appeal against the order of the Ld. CIT (Appeals)-XIII, New Delhi was dismissed. 2. The impugned order upheld the view of the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he material available on record. As per clause 5 of agreement between the assessee and Telkoku Piston Ring Company Ltd., Japan (supra), the royalty is to be paid at the rate of 3 per cent of the sale price of the licensed products subject to certain adjustments. The ld. CIT (A) has examined the agreement and had observed that the license granted by Telkoku Piston Rings Ltd. was non transferable an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of technical knowledge and information in favour of the assessee. Further the terms also contained prohibition in parting with the confidential information received by the assessee under license to third parties. Therefore, the technical information and patents provided by the foreign collaborator could not be treated to have been transferred to the assessee. The assessee received right to use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee as revenue expenditure in both the years." 5. In the present case, royalty amount is to be paid as 3% of the net ex-factory sale by the licensee/assessee. The Tribunal, however, came to the conclusion that for transfer of technical knowledge and information and on proper examination of this Court's decision in CIT v. Sharda Motor Industries Ltd. the amounts were deductable. This C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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