ACIT Circle-9(2), New Delhi V. Frigoglass India Private Ltd., New Delhi

ITA 5884/DEL/2019

AI Insights

The case involves the Income Tax Department (Appellant) against Frigoglass India Pvt. Ltd (Respondent) concerning the disallowance of royalty expenses amounting to Rs. 6,72,85,014 for the Assessment Years 2014-15 and 2015-16. The primary legal contention was whether the CIT(A) was correct in deleting the addition made by the Assessing Officer, which was based on the Tribunal's earlier decision and the dismissal of the department's appeal by the Delhi High Court for a previous assessment year. The Tribunal found no merit in the revenue's appeal, referencing the dismissal of the Special Leave Petition (SLP) by the Delhi High Court and the Tribunal's prior decision in favor of the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131210 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 14-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 04-07-2019
• Other Referred Cases: assessee's own case for Ay 2010-11
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Royalty expenses
• Section: 143(3)

Judgement Text

Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 5883 & 5884/Del/2019 (Assessment Year: 2014-15 and 2015-16) ACIT, Circle-9(2), New Delhi Vs. Frigoglass India Pvt. Ltd, E-20, 1 st and 2 nd Floor, Main Market, Hauz Khas, New Delhi-110016 (Appellant) (Respondent) PAN:AAAACF6804G Assessee by : Sh. Shatanik Chakrabarty, Adv Revenue by: Sh. Sajay Kumar, Sr. DR Date of Hearing 15/02/2023 Date of pronouncement 20/02/2023 O R D E R PER ANUBHAV SHARMA, J. M.: 1. These are the appeals filed by the revenue against the order dated 16.04.2019 of Ld. Commissioner of Income Tax (Appeals)-34, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No. 45/18-19 and 46/18-19 arising out of an appeal before it passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ld AO, ACIT, Circle-9(2),New Delhi (hereinafter referred as the Ld. AO). 2. The revenue has raised the following grounds of appeal:- “1. On the facts and in the circumstances of the case and in law, the ld CIT(A) has erred in deleting the addition of Rs. 6,72,85,014/- made by the Assessing Officer by disallowing royalty expenses.” 3. Heard and perused the record. Page | 2 4. The ld CIT(A) followed the findings of the Tribunal in assessee’s own case for Ay 2010-11 to delete the addition made by the ld AO. The matter of fact is that Hon'ble Delhi High Court has dismissed the appeal of department on this issue. The ld AO had observed that the department had filed SLP in regard to issues for Assessment Year 2010-11. On behalf of the assessee copy of order dated 19.01.2018 in SLP (Civil) Diary No. 41702/2017 has been filed and available at page No. 468 of the paper book for Assessment Year 2014-15, which shows that the department’s SLP stands dismissed and the ld CIT(A) had taken note of the same in its order. Thus, there is no substance in the ground raised on behalf of the revenue 5. Appeals of the revenue are dismissed. Order pronounced in the open court on 20/02/2023. -Sd/- -Sd/- (N. K. BILLAIYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 20/02/2023 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi