M/s. Sigma Freudenberg Nok Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 4060/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 8063 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 03-03-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 06-10-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SURABHI AHULWALIA; J P JANGID
• Assessee Lawyers: BALJIT SINGH

Judgement Text

I.T.A.4060 NO. /DEL/09 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G NEW DELHI) BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO.4060 /DEL/2009 ASSESSMENT YEAR : 2006-07 M/SSIGMA FREUDENBERG NOK ITO, PVT.LTD. R-561, SHANKER ROAD, WARD-8 (4), NEW RAJINDER NAGAR, NEW DELHI. NEW DELHI. V. (APPELLANT) (RESPONDENT) PAN /GIR/NO.AAFCS0306-K APPELLANT BY : SHRI BALJIT SINGH. RESPONDENT BY : SURABHI AHULWALIA, & J.P. JANGID, SR. DR. ORDER PER A.K. GARODIA, AM: THIS IS AN ASSESSEE'S APPEAL DIRECTED AGAINST THE O RDER OF LD CIT(A)-XI, NEW DELHI DATED 30.7.2009 FOR ASSESSMENT YEAR 2006- 07. 2. THE ONLY GROUND RAISED BY THE ASSESSEE READS AS UNDER:- THE LD CIT(A) ERRED ON THE FACTS AND IN LAW IN SUS TAINING THE DISALLOWANCE OF 25% OF THE ROYALTY PAID, AMOUNTING TO RS.7,21,517/- EVEN THOUGH THIS IS THE 4 TH YEAR RUNNING OF THE COMPANY AND THE ROYALTY IS PAI D FOR EXISTING PRODUCTS AND NOT NEW PRODUCTS. . I.T.A. NO.4060/DEL/09 2/3 3. BRIEF FACTS OF THE CASE ARE THAT DURING THE PERI OD UNDER CONSIDERATION, THE ASSESSING OFFICER HAS DISALLOWED 25% OF ROYALTY PAY MENT OF RS.28.86 LAKHS AND IN THIS MANNER, THE DISALLOWANCE WAS MADE OF RS.7,2 1,517/- TREATING THE SAME AS CAPITAL EXPENSES. IT IS NOTED BY THE CIT(A) ON PAGE NO.3 OF HIS ORDER THAT THE ASSESSEE WAS CLAIMING DEDUCTION ON ACCOUNT OF ROYAL TY PAYMENT SINCE ASSESSMENT YEAR 2003-04 AND THE ASSESSING OFFICER H AS BEEN DISALLOWING 25% OF ROYALTY SINCE THAT YEAR TREATING IT AS CAPITAL E XPENSES. IT IS FURTHER NOTED BY THE LD CIT(A) THAT SUCH DISALLOWANCE WAS CONSISTENTLY U PHELD BY THE LD CIT(A) TILL ASSESSMENT YEAR 2005-06. IT IS FURTHER NOTED THAT THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL AND IN ASSESSM ENT YEAR 2003-04 AND 2004- 05, THE TRIBUNAL HAS CONFIRMED SUCH DISALLOWANCE AN D BY FOLLOWING THE TRIBUNAL DECISION, LD CIT(A) HAS CONFIRMED THE DISALLOWANCE IN THE PRESENT YEAR ALSO. NOW, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. IT WAS FAIRLY CONCEDED BY THE LD AR OF THE ASSES SEE THAT THIS ISSUE IS COVERED AGAINST THE ASSESSEE BY VARIOUS TRIBUNAL DE CISIONS IN ASSESSEES OWN CASE WHICH ARE FOLLOWED BY LD CIT(A). SINCE THE ISS UE IN DISPUTE IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE TRIBUNAL DECISI ON IN ASSESSEES OWN CASE IN EARLIER YEARS AS FOLLOWED BY LD CIT(A), WE FIND NO REASON TO INTERFERE IN THE ORDER OF THE LD CIT(A) AND HENCE WE CONFIRM THE SAME. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. 6. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE O F HEARING I.E. 3RD MARCH, 2010. SD/- SD/- (GEORGE MATHAN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 03.3.2010. HMS . I.T.A. NO.4060/DEL/09 3/3 COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY. BY ORDER (ITAT, NEW DELHI).