DCIT, NEW DELHI vs M/S. HONDA SIEL POWER PRODUCTS PVT. LTD., UTTAR PRADESH

Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI

Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI

For Appellant: Shri Neeraj Kumar Jain, Adv, Ms. Shaily Gupta, CA

For Respondent: Shri Surender Pal, Sr. DR, Shri Neeraj Kumar Jain, Adv, Ms. Shaily Gupta, CA

Hearing: 04/10/2018Pronounced: 10/12/2018

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the revenue against the order of the ld CIT(A)-4, New Delhi dated 30.03.2015 for the Assessment Year 2003-04. 2. The revenue has raised the following grounds of appeal:-

1. Whether on the facts and circumstances of the case & in law, the ld CIT(A) erred in deleting the disallowance of Rs. 2,11,67,250/- made on account of capitalization of royalty expenses.”

Brief facts of the case shows that the assessee company filed its return of income declaring total income of Rs. 197319896/- on 27.11.2003. the assessment under section 143(3) of the Act was passed on 01.10.2009, wherein, the ld AO made disallowance of Rs. 21167250/- on account of royalty expenses paid held to be of capital nature. The income was assessed at Rs. 234470158/-. The assessee preferred appeal before the ld CIT(A) who passed the order dated 30.03.2015 deleting the above addition relying on the decision of the Hon'ble Delhi High Court in case of assessee for Assessment Year 2000-01 to 2002-03. Page | 1

DCIT, NEW DELHI vs. M/S. HONDA SIEL POWER PRODUCTS PVT. LTD., UTTAR PRADESH