DCIT, CHENNAI V. M/s. Shriram Financial Products Solution (Chennai) Pvt.Ltd., CHENNAI

ITA 2742/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7627 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-01-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 22-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H KABILA
• Keywords: Capital expenditure

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !.. # $%, ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.2742/MDS/2016 + ,+ / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(1), CHENNAI - 600 034. V. M/S SHRIRAM FINANCIAL PRODUCTS SOLUTION (CHENNAI) PVT. LTD., NO.4, MOOKAMBIKA COMPLEX, LADY DESIKACHARY ROAD, CHENNAI - 600 004. PAN : AAPCS 5666 L (.// APPELLANT) (01.// RESPONDENT) ./ 2 3 / APPELLANT BY : MS. H. KABILA, JCIT 01./ 2 3 / RESPONDENT BY : SH. A.N.R. JAYAPRATHAP, ADVOCA TE # 2 4' / DATE OF HEARING : 02.02.2017 56, 2 4' / DATE OF PRONOUNCEMENT : 09.03.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 15, CHEN NAI, DATED 27.06.2016 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2 I.T.A. NO.2742/MDS/16 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO ADDITION OF ` 48,34,765/-, TOWARDS ROYALTY PAYMENT. 3. MS. H. KABILA, THE LD. DEPARTMENTAL REPRESENTATI VE, SUBMITTED THAT THE ASSESSEE PAID AND OBTAINED ENDUR ING BENEFIT ON AN INTANGIBLE ASSET, THEREFORE, THE ROYALTY PAYMENT IS CAPITAL EXPENDITURE. REFERRING TO THE ORDER OF THIS TRIBUN AL FOR ASSESSMENT YEAR 2012-13 IN THE ASSESSEE'S OWN CASE, THE LD. D. R. SUBMITTED THAT THE ORDER OF THIS TRIBUNAL HAS NOT BECOME FINA L AND THE APPEAL FILED BY THE REVENUE IS PENDING BEFORE THE HIGH COU RT. THEREFORE, THE CIT(APPEALS) IS NOT JUSTIFIED IN ALLOWING THE C LAIM OF THE ASSESSEE ON FOLLOWING THE ORDER OF THIS TRIBUNAL. 4. WE HAVE HEARD SHRI A.N.R. JAYAPRATHAP, THE LD. C OUNSEL FOR THE ASSESSEE ALSO. ADMITTEDLY, THE ASSESSEE HAS PA ID ROYALTY FOR USING LOGO WHICH BELONGS TO SHRIRAM OWNERSHIP TRUST . IN FACT, A SIMILAR CLAIM OF THE ASSESSEE WAS ALLOWED IN THE AS SESSEE'S OWN CASE BY THIS TRIBUNAL FOR ASSESSMENT YEAR 2012-13. THE CIT(APPEALS) ALLOWED THE CLAIM OF THE ASSESSEE BY P LACING RELIANCE ON THE ORDER OF THIS TRIBUNAL. NOW AN APPEAL HAS B EEN FILED BEFORE THIS TRIBUNAL ONLY ON THE GROUND THAT THE APPEAL FI LED BY THE REVENUE IS PENDING BEFORE THE HIGH COURT. IT IS NO T THE CASE OF THE 3 I.T.A. NO.2742/MDS/16 REVENUE THAT THE HIGH COURT STAYED OPERATION OF THE ORDER OF THIS TRIBUNAL. MERE PENDING OF APPEAL BEFORE HIGH COURT CANNOT BE A REASON TO TAKE A DIFFERENT VIEW. SINCE IDENTICAL P AYMENT WAS ALLOWED FOR ASSESSMENT YEAR 2012-13 BY THIS TRIBUNA L, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 9 TH MARCH, 2017 AT CHENNAI. SD/- SD/- ( ! . . # $% ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 9 TH MARCH, 2017. KRI. 2 04$9 :9,4 /COPY TO: 1. ./ /APPELLANT 2. 01./ /RESPONDENT 3. # ;4 () /CIT(A)-15, CHENNAI-34 4. # ;4 /CIT-6, CHENNAI-34 5. 9< 04 /DR 6. !+ = /GF.