9911796707
TMI Blog2014 (10) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts manufactured by the assessee company and the same is not incurred for acquiring a process or design or technology which can be utilized by the assessee for years to come so as to categorize such expenditure, as capital in nature. Nothing was brought on record by the learned DR to controvert the findings of the CIT(A). We therefore do not find any reason to interfere in the order of CIT(A) for allowing the entire payment of royalty as revenue expenditure. Appeals of the Revenue are dismissed. - I.T.A .No.-5276 & 5275 /Del/2013 - - - Dated:- 10-10-2014 - SMT DIVA SINGH, JUDICIAL MEMBER AND SH. B.C.MEENA, ACCOUNTANT MEMBER Appellant by Sh. V.K.Jain, CA Respondent by Sh. Devi Sharan Singh, Sr. DR ORDER PER DIVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in the business of manufacturing of PVC profiles entered into an agreement with M/s Tokai Kagyo Co. Ltd., Japan to procure technical assistance relating to knowhow , training, education and upgradation of technology used by the assessee company. An agreement was executed on 01.11.2000 which was effective upto 31.10.2005. The said agreement contained specific terms that after the expiry of the agreement the assessee would not be entitled to use the technology. The assessee was required in terms of the said agreement to pay royalty computed at the rate of 2% net ex-factory sales price for 5 years from the date of commercial production. However the AO following his past practice disallowed 25% of the such royalty payment holding the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to categorize such expenditure, as capital in nature. Nothing was brought on record by the learned DR to controvert the findings of the CIT(A) recorded at pages 5 6 of appellate order. We therefore do not find any reason to interfere in the order of CIT(A) for allowing the entire payment of royalty as revenue expenditure. 4.1. Considering the fact that identical issue in 2005-06, 2006-07 2008-09 assessment years have been followed and the years under consideration are intervening years and noting that there is no change in facts, circumstances or position of law, we hold that the departmental appeals have no merit. The same are accordingly dismissed. The said order was pronounced in the presence of the parties. 5. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
