CIT v. EKL Appliances

M/S. SENIOR INDIA PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

In the result appeal of the assessee is dismissed

…nd has been incurred wholly and exclusively for the purposes of its business. The Ld. AR relied upon the decision of Sassoon J. David Vs. CIT (1979) 118 ITR 261 as well as the decision of the Hon’ble Delhi High Court in the case of CIT Vs. EKL Appliances Ltd. 341 ITR 241 (Del). Thus, the Ld. AR submitted that the expenditure in respect of warranty was wholly and exclusively incurred by the assessee for the purpose of its business and was not in the nature of capital or personal nature and thus entitled to deduction under Section 37(1) of the Act. 8. As regards ground No. 4, the Ld. AR submitted that the same is…

NISSIN BRAKE INDIA PVT. LTD.,GURGAON vs. DCIT, CIRCLE- 3, GURGAON

Bench: Hon’Ble, Shri N.K. Saini & Shri Kuldip Singh

…ilable at pages 969 of the paper book and request received from customers via email to modify the products. 14. The ld. AR for the taxpayer in support of his contentions relied upon the decision of Hon’ble Delhi High Court in CIT vs. EKL Appliances Ltd. – 341 ITR 241 (Del.) and also relied upon – ITA No.1040/Hyd/211, Thyseenkrupp Industries India Pvt. Ltd. 10 – ITA No.7032/Mum/2011 and Toyota Kirloskar Auto Parts Pvt. Ltd. vs. ACIT – IT(TP)A.No.1642/Bang/2012. 15. However, on the other hand, ld. DR for the Revenue contended that for determining the ALP of royalty and product development fee, best method is…

PR. COMMISSIONER OF INCOME TAX-3 vs. FRIGOGLASS INDIA PVT. LTD.

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE NAJMI WAZIRI

…lied. The second argument was that the assessee’s AO had required the payment of royalties and that the issue concerned was one of real business arrangements. The findings of the ITAT are premised upon the decision of this Court in CIT v. EKL Appliances 341 ITR 241 (Del) and are inter alia extracted as follows: “16. We have heard the rival parties at length and carefully perused the material on record. As far as the issue of royalty is concerned, we find that the assessee had filed in the course of the TPO, assessment as well as before the DRP, detailed submissions regarding agreement between AE and…

FRIGOGLASS INDIA PVT. LTD.,GURGAON vs. DCIT, NEW DELHI

In the result, the appeal of the assessee is partly allowed

Bench: Shri S.V. Mehrotra & Shri Sudhanshu Srivastavaay: 2010-11 Frigoglas India Pvt. Ltd., Vs Dcit, Plot 26-A, Sector-3, Circle-9(2), Imt Manesar, New Delhi. Gurgaon. (Pan: Aaacf6804G) (Appellant) (Respondent) Appellant By: Shri Harpreet Singh, Adv. Shri Rophan Khare, Adv. Shri Gagandeep Nagpal, Ca Respondent By: Shri Amendra Kumar, Cit Dr Date Of Hearing: 11.01.2016 Date Of Pronouncement: 08.04.2016

…ore the DRP, detailed submissions, including agreement between AE and the assessee, 19 I.T.A. 1906/D/2015 Assessment year: 2010-11 justifying how the technical know-how supplied by its AE was crucial to the running of its business. In CIT vs EKL Appliances 341 ITR 241 (Del), the Hon'ble Delhi High Court had the occasion to consider an issue of disallowance of royalty by TPO because the assessee in that case had been suffering losses, the Hon'ble High Court while holding that so long as the expenditure or payment by assessee has been demonstrated to have been incurred or laid out for the purposes of business…