ACIT, NEW DELHI vs. M/S ESCORTS LTD., NEW DELHI

PDF · subscribers
ITA 2116/DEL/2016Status: DisposedITAT Delhi14 August 2019AY 2007-083 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the issue was covered by its previous order for AY 2004-2005, which was correctly followed by the CIT(A). Therefore, the departmental appeal was dismissed.

What were the facts?

The Revenue appealed against the deletion of an addition of Rs. 1.48 crores made by the Assessing Officer on account of royalty payment. The assessee contended that the issue was covered by previous ITAT orders for the same assessee.

What were the issues?

Whether the royalty payment made by the assessee was to be treated as revenue expenditure or not, and if previous ITAT orders on the same issue for the same assessee were binding.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “D”: DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.R.R. KUMAR

Hearing: 13.08.2019Pronounced: 14.08.2019

This appeal by Revenue has been directed against the Order of the Ld. CIT(A)-44, New Delhi, Dated 09.11.2015, for the A.Y. 2007-2008, challenging the Order of Ld. CIT(A) in deleting the addition of Rs.1.48 crores made by A.O. on account of royalty payment.

2 ITA.No.2116/Del./2016 M/s. Escorts Ltd., New Delhi. 2. The assessee submitted before the Ld. CIT(A) that this issue is covered by the Order of ITAT for A.Y. 2004- 2005 in ITA.No.2221/Del./2009 dated 25.02.2010. The Ld. CIT(A) reproduced the findings of the Tribunal in the appellate order and allowed the appeal of assessee holding that royalty payment is revenue expenditure.

3.

Learned Counsel for the Assessee at the outset submitted that issue is covered by the Order of ITAT for the A.Y. 2004-2005 (supra). Copy of the Order is placed on record. He has also submitted that the same order for A.Y. 2004-2005 have been relied upon by ITAT, Delhi B-Bench in the case of same assessee for A.Y. 2011-2012 and departmental appeal have been dismissed vide Order dated 05.01.2018. Copy of both the Orders are furnished on record. The Ld. D.R, therefore, suggested that the issue is covered in favour of the assessee by the above orders.

4.

In view of the above, it is clear that the issue is covered by the Order of ITAT for the A.Y. 2004-2005 (supra). The Ld. CIT(A) correctly followed the Order of the Tribunal.

3 ITA.No.2116/Del./2016 M/s. Escorts Ltd., New Delhi. The departmental appeal has no merit and the same is accordingly dismissed.

5.

In the result, appeal of the Department dismissed.

Order pronounced in the open Court.

Recent GST High Court judgments

Search GST case law →