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TMI Blog2023 (5) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... pportioned between the manufacturing units of the assessee on prorata basis as done and accepted in case of other corporate expenses. Accordingly the appeal of the assessee is allowed on the point on the issue remanded by the Hon ble High Court to the Tribunal and that of the revenue is dismissed. - ITA No.2105 And 2106/Del/2010 And ITA No.1958 And 1959/Del/2010 - - - Dated:- 26-4-2023 - Sh. N. K. Billaiya, Accountant Member And Sh. Anubhav Sharma, Judicial Member For the Appellant : Sh. M.P. Rastogi, Advocate, Ms. Manish Jha, CA For the Respondent : Ms. Sarita Kumari, CIT DR ORDER PER N. K. BILLAIYA, AM: ITA No.2105/Del/2010 and 195/Del/2010 are cross appeals by the revenue and the assessee preferred against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad held that the respondent-assessee had manufactured and produced the sachet pouches using the technical know-how provided in terms of the MoUs. The Tribunal reversed the said finding without any discussion and explanation to arrive at a completely , contrary view accepting the contention of the respondent-assessee. No reason and ground have been recorded why the finding of the Assessing Officer was incorrect or wrong. 21. Accordingly, we are of the opinion that the matter requires re-examination by the Tribunal on the question/ whether the Jammu Unit had utilized the technical know-how provided to the respondent assessee company under the MoUs. Till this core and important aspect and question is decided, we cannot proceed and decide, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having manufacturing facilities at Noida Malanpur, Jammu. Jammu unit was started in A.Y.2005-06 and was eligible for deduction u/s. 80IB of the Act. 8. During the year under consideration the assessee had entered an agreement with one Mr. Ashok Chaturvedi to license and transfer the know-how and technology for the production of improved sachet pouches with additional gusset either on one or both the sides of the sachet with a scoring line in the form of a laser cut. The agreement is placed at page 77 to 81 of the paper book. A perusal of the same show that the assessee was allowed to exploit the technology commercially at its plant located at Bari Brahman, Jammu and other parts of the country. 9. The first error in the assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady been considered and allowed by the AO. The only quarrel is whether the royalty payment net of royalty received has to be apportioned amongst the different units of the assessee or has to be considered only at Jammu Unit. 14. Considering the facts discussed here in above we are of the considered opinion that the royalty payment net of license fee received should be apportioned between the manufacturing units of the assessee on prorata basis as done and accepted in case of other corporate expenses. Accordingly the appeal of the assessee is allowed on the point on the issue remanded by the Hon ble High Court to the Tribunal and that of the revenue is dismissed. Order pronounced in the open court on 26.04.2023. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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