HEIDELBERG CEMENT INDIA LTD.,GURGAON vs. DCIT, GURGAON
In the result, the appeal filed by the assessee is partly allowed
ITA 2054/DEL/2016[2011-12]Status: DisposedITAT Delhi31 Oct 2019AY 2011-12
Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2011-12 Heidelberg Cement India Ltd., Vs Dcit, 9Th Floor, Tower-C, Circle-2, 3Rd Floor, Infinity Towers, Dlf Cyber City, Vanijya Nikunj, Gurgaon. Hsiidc Building, Udyog Vihar, Ph. V, Pan: Aabcm2359J Near Shankar Chowk, Nh-8, Gurgaon. (Appellant) (Respondent) Assessee By : Shri Deepak Chopra, Advocate & Sh. Harpreet Singh Ajmani, Advocate Revenue By : Ms Ashima Neb, Sr. Dr Date Of Hearing : 28.08.2019 Date Of Pronouncement : 31.10.2019 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 1St February, 2016 Of The Cit(A)-1, Gurgaon, Relating To Assessment Year 2011-12. 2. Grounds Of Appeal No. 1 & 1.1 Raised By The Read As Under:- “1. The Ld. Cit(A) Has Erred On Facts & In Law, In Confirming The Disallowance Made By The Ld. Ao, Amounting To Inr 87,12,690/-, On Account Of Additional Depreciation Claimed By The Appellant On New Plant & Machinery In Accordance With The Provisions Of Section 32(I)(Iia) Of The Act. 1.1 The Ld. Cit(A) / Ld. Ao Erred On Facts & In Law, In Considering Only The Nomenclature Of The Assets To Hold The Disallowance, Without Appreciating The Detailed Nature & Use Of The Assets.”
For Appellant: Shri Deepak Chopra, Advocate &For Respondent: Ms Ashima Neb, Sr. DR
Section 32Section 32(1)(iia)
…Delhi), the assessee had not acquired ownership right of technical knowhow but transfer of use of licenses. There was no advantage of enduring nature and hence it was held to be a case of revenue expenditure. In the case of Travancore Sugar and Chemicals Ltd. 62 ITR 566 (SC) it was held that whenever a payment is based on a percentage of turnover or profits, it necessarily has no relation to the capital value of the asset, because it cannot be known at the time of the agreement what the turnover or profits will be over a period of years. In another case reported as DCIT Vs. Swaraj Engines Ltd. (2002) 124 Taxman 1…
