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TMI Blog2012 (12) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... - ITA no.1525/Ahd/2005 - - - Dated:- 25-1-2012 - SHRI D. K. TYAGI A MOHAN ALANKAMONY, JJ. Assessee by :- Shri M K Patel, AR Revenue by:- Shri Ravindra Kumar, CIT DR ORDER PER D K TYAGI (JM) :- This is assessee s appeal against the order of ld. CIT(A) dated 3/3/2005. 2. At the time of hearing, the learned counsel of the assessee submitted a chart according to which the following issues are subject matter of this appeal:- (1) Taxing of Profit u/s 41(2) Rs.87,26,224/- (2) Taxing of Right to receive Royalty/fees Rs.4,75,000/- (3) Taxing of expenditure on scientific research u/s 41(1) Rs.25,00,000/- (4) Increase in value of closing stock of finished goods Rs.18,20,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 25-10-2001 in ITA no.3009/Ahd/1991, set-aside the issues of abovementioned additions to the file of the AO with a direction for fresh adjudication in the light of detailed guidelines given by the Hon ble Gujarat High Court in the case of Shahibaug Enterpreneurs Pvt. Ltd. [I.T. Reference No.243 of 1985]. The relevant portion of the Tribunal s order, which read as under:- 2. Ground No.1 to 4 involve the following additions aggregating to Rs.1,31,96,224/- made by the AO in connection with the sale of three divisions of the assessee company to its holding company Ofisade Pvt. Ltd., w.e.f. 1-3-77 as under:- (a) Profit u/s 41(2) being depreciation on plant machinery Rs.87,26,224/- (b) Profit u/s 41(3) being capital expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng contested by the assessee vide first four grounds before us. 3. Shri R K Patel, the ld. counsel for the assessee filed during the course of hearing before us a copy of the recent decision of Gujarat High Court in the case of CIT vs. Shahibaug Enterpreneurs Pvt. Ltd. in I.T. Reference No.243 of 1985 wherein the Gujarat High Court vide its order dated 8-3-2001 has decided similar issue under identical facts and circumstances of the case and restored the issue regarding assessment of profits u/s 41(2) to the file of the AO for fresh adjudication in the light of detailed guidelines given in the said decision. The ld. counsel pointed out that this decision has been followed in other group cases by the Hon ble Gujarat High Court and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t aside to the AO for fresh consideration in the light of the guidelines provided by the Hon ble Gujarat High Court as above. We would accordingly set aside the aforesaid additions as per ground No.1 to 4 to the file of the AO for fresh adjudication as above. 4. In pursuance of this order of the Tribunal, the AO issued a notice u/s 143(2) read with section 254 of the Act. The AO after taking into consideration the submissions of the assessee, repeated the additions by observing as under:- I have considered submissions and details given by the assessee. Assessee has simply given the details of depreciation on know how, vehicles, lift, laboratory equipments, however, assessee has not substantiated their claims and has also not given a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records, we find that the Tribunal vide its order dated 25-10-2001 in ITA No.3009/Ahd/1991has set aside the matter back to the file of the AO to decide the issues in the light of directions given by the Hon ble Gujarat High Court in the case of Shahibaug Enterpreneurs Pvt. Ltd. (supra). The AO gave due opportunity to the assessee to give the details so that the AO could decide the issues in the light of the Gujarat High Court decision. However, we find that the assessee has failed to give any details worth the name in respect of its claims and, therefore, we are not inclined to interfere with the orders passed by the lower authorities, and the same are hereby upheld. The grounds in respect of issue nos. 1, 3, 4 5 are dismissed. 9. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of consideration is liable to be taxed as amount received in lieu of income. An amount of Rs.4,75,000/- is therefore added to the assessee s total income. The AO has included a sum of Rs.2,25,000/- on account of royalty receivable from the first party during the AY 78-79 and further amount of Rs.2,50,000/- on account of royalty accruing in 1979. Thus total addition of Rs.4,75,000/- has been made. The contention of the ld. counsel before us is that right to receive income in the subsequent assessment years cannot be taxed in the present assessment year. From the order of the AO it is not ascertainable as to the amount of royalty fee which has accrued during the year and how the same have been accounted for in the deed of assignment in r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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