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TMI Blog2019 (2) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CIT(A). Accordingly, we confirm the same. Disallowance of licence fees paid to Consultant/Doctors abroad - AO had disallowed licence fees paid by the assessee having observed that the licence fees paid and claimed as an expenditure by the appellant company ought to have been borne by the Consultant/Doctors abroad - HELD THAT:- It is an arrangement between the appellant and the consultant doctors with regard to remunerations and the licence fees to be paid. If the appellant takes the responsibilities of making the payment of licence fee on behalf of the Doctors and paid a lesser remuneration, this arrangement should not have been doubted by the Revenue authorities unless and until the arrangement is held to be in contravention to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in the circumstances of the case, the CIT(A) erred in directing the AO to factually verify and satisfy himself that the telecommunication charges and insurance were not recovered and included in the export turnover, while not appreciating the fact that the AO noticed from the replies submitted by the assessee that the assessee while computing income under section 10A, has adopted Export Turnover, which is inclusive of Telecommunication Expenses and Insurance expenses. 4. On the facts and in the circumstances of the case, the CIT(A) erred in following the judgements of this Honourable Tribunal in the case of M/s Tata Elxsi Ltd. Vs CIT in ITA Nos.398, 1074 1410/B/2012 dtd.20-03-2015, and setting aside the issue back to the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SEPs are pending before the Hon'ble Apex Court ? 8. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer may be restored. 9. The appellant craves leave to add, alter, amend and/or delete an), of the grounds mentioned above. 2. Except ground No. 5, all grounds relates to an issue of exclusion of telecommunication and insurance charges from the total turnover and the export turnover. The CIT(A) had adjudicated these issues following the judgment of the jurisdictional High Court in the case of Tata Elxsi Ltd., Vs. CIT 349 ITR 98 in which it has been categorically held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance upon the order of the AO with the submission that licence fee is a liability of the Doctors and not of the assessee, therefore the assessee cannot claim the licence fee as revenue expenditure. 5. The learned Counsel for the assessee has contended that it is a business arrangement between the assessee and the consultants/doctors. If the assessee does not pay the licence fee on behalf of the doctors, he has to compensate the doctors by making additional payment for the services. The arrangement made by the appellant and the consultant/doctors could not be examined by the AO keeping aside the business need. Therefore, the CIT(A) has rightly allowed the claim of the assessee. 6. Having carefully examined the order of the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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