DCIT, CENTRAL CIRCLE , GHAZIABAD vs. AMRIT BANASPATI COMPANY LTD., NOIDA

ITA 4923/DEL/2018Status: DisposedITAT Delhi13 March 2026AY 2010-11Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI M. BALAGANESH (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that royalty paid for the use of a brand logo, which was not part of the original demerger scheme, was not allowable. However, it allowed depreciation on assets where a capital subsidy was received, citing Supreme Court and Gujarat High Court decisions that such subsidies are incentives and not directly for meeting the cost of assets.

What were the facts?

The assessee claimed royalty payments for brand usage, which was disallowed by the Assessing Officer and upheld by the CIT(A). The assessee also claimed depreciation on assets where a capital subsidy was received, leading to a reduction in depreciation. The Revenue appealed against these decisions.

What were the issues?

The key issues were the allowability of royalty payments for brand logos and the treatment of capital subsidies for depreciation purposes.

Which sections of the Income-tax Act were involved?

Section 43(1),Section 143(3),Section 153A,Section 234B,Section 234C,Section 234D

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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH

For Appellant: Adv. Ms. Somya Jain, CA
For Respondent: Ms. Monika Singh, CIT(DR)
Hearing: 03.03.2026Pronounced: 13.03.2026

PER SATBEER SINGH GODARA, JM These assessee’s and Revenue’s three cross appeals each ITA Nos.3432, 3433 & 3434/Del/2018 with ITA Nos.4923, 4924 &

ITA Nos.3432, 3433 & 3434/Del/2018 ITA Nos.4923, 4924 & 4925/Del/2018

4925/Del/2018 for assessment years 2010-11, 2011-12 and 2012- 13, arise against the Commissioner of Income Tax (Appeals) [in short, the “CIT(A)”], Meerut’s orders, all dated 06.04.2018 passed in case n

The order continues below.

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