CIT v. Hero Honda Motors Ltd.

Hero Motocorp Ltd., New Delhi vs. DCIT, Circle- 11(1), New Delhi

Appeal of the assessee is partly allowed for statistical purpose

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

…was allowable revenue expenditure. The Ld. AR submitted that the aforesaid orders of the Tribunal relating to assessment years 2000-01 to 2002-03 have been affirmed by the Delhi High Court in the assessee’s own case reported as CIT v. Hero Honda Motors Ltd.: 372 ITR 481. 54. The Ld. AR further submitted that the model fees allowed as revenue expenditure in preceding years. In the assessee’s own case for A.Y 1996-97, the Tribunal was pleased to allow model fee paid to Honda under section 37(1) of the Act as revenue expenditure on the ground that payment was only for right to use the technical know-how and there w…

ACIT, New Delhi vs. M/S Continental India Ltd., Meerut

Bench: Shri Kuldip Singh & Shri Dr. M.L.Meena

…tinue use of the technology, hence, acquired no proprietary right in the know-how received from continental AG and relied upon decision rendered by Delhi High Court in CIT vs. Sharda Motor Industries Ltd. 319 ITR 109 (Del. HC), CIT vs. Hero Honda Motors Ltd. 372 ITR 481 (Del.HC). 18. The Ld. DR supported the assessment order by relying upon decision rendered by Hon’ble Supreme Court Honda Siel Car India 11 ITA No. 207/Del./2016 Ltd., And decision rendered by co-ordinate bench of Tribunal in case 19. Hon’ble Delhi High Court in case of Sharda Motors Industries Ltd. (Supra) decided the identical issue of transf…

DCIT, New Delhi vs. M/S. Honda Siel Power Products Ltd., New Delhi

In the result, the appeal filed by Revenue is dismissed

Bench: Shri R.K. Panda & Smt. Beena A. Pillaiassessment Year: 2011-12 Dcit, Vs. Honda Siel Power Products Ltd., Circle-11(1), 409, Dlf Tower-B, New Delhi. Jasola Commercial Complex, New Delhi. Pan: Aaach8464L

…(a) (ia) of the Income Tax Act, 1961 holding that export commission is neither royalty nor fee for technical service? 3. As far as Question (1) is concerned, it has been answered in favour of the Assessee in Assessee’s own case CIT v. Hero Honda Motors [2015] 372 ITR 481 (Del.) The Court, accordingly, declines to frame a question of law on this issue.” 9. We find, the Tribunal in assessee’s own case for assessment year 2009-10 and 2010-11 has also taken a similar view. On further appeal by the Revenue, the Hon'ble High Court, vide ITA No.118/2017, order dated 1st March, 2017, has, again, dismissed the appeal fi…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A .No. 467/Del/2014 (A.Y 2009-10)

…thKline Consumer Healthcare Ltd. : ITA No. 1324/Chd/2012 (Chd) Glaxo SmithKline Consumer Healthcare Ltd. v DCIT: 175 TTJ 552 (Chd. • Trib.) 110 The Ld. AR further pointed out the decision of the Delhi High Court in the case of CIT v. Hero Honda Motors Ltd.: 372 ITR 481, wherein the High Court while following the aforesaid decisions has held that royalty payment made to a foreign company for merely acquiring right to use technical knowhow whereas ownership and intellectual property rights in know how remained with foreign company, was allowable revenue expenditure. In the aforesaid judgments, the Courts/ Tribuna…

Hero Motocorp Ltd., New Delhi vs. Addl.CIT, Range-11, New Delhi

In the result ground No

Bench: Shri R. K. Panda & Ms Suchitra Kamblei.T.A. No. 6990/Del/2017 (A.Y 2013-14)

…owable revenue expenditure. It would be pertinent to note that the aforesaid orders of the Tribunal relating to assessment years 2000-01 to 2002-03 have been affirmed by the Delhi High Court in the assessee's own case reported as CIT v. Hero Honda Motors Ltd. 372 ITR 481. 48. The Ld.AR submitted that the Model fees has been allowed as revenue expenditure in preceding years. In the assessee’s own case for A.Y. 1996-97, Tribunal allowed model fee paid to Honda under Sec. 37(1) of the Act the technical know-how and there was no ownership of any intellectual property, which continued to remain with Honda. The said de…

Hero Motocorp Ltd., New Delhi vs. DCIT, New Delhi

In the result appeal No. 2424/Del/ 2015 filed by the revenue in assessment year 2010-11 is partly allowed

Bench: Shri R. K. Panda & Ms Suchitra Kamble

…lowable revenue expenditure. It would be pertinent to note that he aforesaid orders of the Tribunal relating to assessment years 2000-01 to 2002-03 have been affirmed by the Delhi High Court in the assessee's own case reported as CIT v. Hero Honda Motors Ltd. 372 ITR 481. 74. The Ld. AR submitted that the Model fees has allowed as revenue expenditure in preceding years. In the assessee’s own case for A.Y. 1996-97, the Tribunal allowed model fee paid to Honda under section 37( 1) of the Act as revenue expenditure on the ground that payment was only for right to use the technical know-how and there was no ownership…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed in part for statistical purposes

Bench: Shri N.K. Saini & Shri K.N. Charry

…hat new models/ variants of car are introduced by the assessee based on the license agreement does not mean that an altogether new product was manufactured. He made a reference to the decisions of the Delhi High Court in case of CIT v. Hero Honda Motors Ltd.: 372 ITR 481 and decision of the Delhi Bench of the Tribunal in the case of Hero Honda Motors Limited v. DCIT: ITA no. 5130/Del/2010 for A.Y. 2006-07, and also to the decision of the Delhi Bench of the Tribunal in the case of Hero Honda Motors Limited v. DCIT in ITA Nos. 716 to 718/Del/2008 for the assessment years 2000-01 to 2002-03 wherein, a coordinate Ben…

M/S Hero Honda Motors Ltd, New Delhi vs. DCIT, New Delhi

In the result, appeal filed by the assessee is allowed

Bench: Sh C.M.Garg & Shri Prashant Maharishihero Honda Motors Ltd, Dcit, 34, Basant Lok, Vasant Vihar, Circle-12(1), Vs. New Delhi New Delhi Pan:Aaacg0812J (Appellant) (Respondent)

…2148/del/2009 A Y 2004-05 Appeal Against Order u/s 263 of The ACT Page 4 of 34 Honourable High court and supreme court. He submitted that this issue is now squarely covered in favor of the assessee by the decision of the Hon'ble Delhi High Court reported at 372 ITR 481 in its own case. On the issue of disallowance of model fees he submitted that the issue was raised by the Assessing Officer during the course of assessment proceedings which was replied by the assessee vide letter dated 23.11.2006 and after discussion the ld Assessing Officer disallowed 25% of the above expenditure holding it to be capital in nat…

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

…wable revenue expenditure. It would be pertinent to note that he aforesaid orders of the Tribunal relating to assessment years 2000-01 to 2002-03 have been affirmed by the Delhi High Court in the appellant‘s own case reported as CIT v. Hero Honda Motors Ltd.: 372 ITR 481. 94) The Ld. departmental representative vehemently supported the order of the Ld. assessing officer and submitted that the demo payment has resulted into the enduring benefit as the appellant was entitled to use information even after the termination of agreement and there is it is degree of perpetuating India war agreements based on which the p…

DCIT, Gurgaon vs. M/S. Mitsubishi Electric Automotive India Pvt. Ltd., Gurgaon

In the result, the appeals of the Revenue are dismissed

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

…made by the assessee. Thus, it is recurring revenue expenditure and no asset is transferred to the assessee. He also relied upon the following decisions :- (i) CIT Vs. Ciba of India Ltd. – [1968] 69 ITR 692 (SC). (ii) CIT Vs. Hero Honda Motors Ltd. – [2015] 372 ITR 481 (Delhi). (iii) Hero MotoCorp Limited Vs. Addl.CIT – Order dated 23.11.2012 of ITAT in ITA No.5130/Del/2010. (iv) CIT Vs. Sharda Motor Industrial Ltd. – [2009] 319 ITR 109 (Delhi). (v) Climate Systems India Ltd. Vs. CIT – [2009] 319 ITR 113 (Delhi). (vi) CIT Vs. G4S Securities System (India) P.Ltd. – [2011] 338 ITR 46 (Delhi). (vii) Shriram Refrig…

DCIT, Gurgaon vs. M/S. Mitsubishi Electric Automotive India Pvt. Ltd., Gurgaon

In the result, the appeals of the Revenue are dismissed

Bench: Shri G.D. Agrawalbefore Shri G.D. Agrawal & And Before Shri Before Shri G.D. Agrawalg.D. Agrawal & And Shri Sudhanshu Srivastava Shri Sudhanshu Srivastavashri Sudhanshu Srivastava Shri Sudhanshu Srivastava

…made by the assessee. Thus, it is recurring revenue expenditure and no asset is transferred to the assessee. He also relied upon the following decisions :- (i) CIT Vs. Ciba of India Ltd. – [1968] 69 ITR 692 (SC). (ii) CIT Vs. Hero Honda Motors Ltd. – [2015] 372 ITR 481 (Delhi). (iii) Hero MotoCorp Limited Vs. Addl.CIT – Order dated 23.11.2012 of ITAT in ITA No.5130/Del/2010. (iv) CIT Vs. Sharda Motor Industrial Ltd. – [2009] 319 ITR 109 (Delhi). (v) Climate Systems India Ltd. Vs. CIT – [2009] 319 ITR 113 (Delhi). (vi) CIT Vs. G4S Securities System (India) P.Ltd. – [2011] 338 ITR 46 (Delhi). (vii) Shriram Refrig…

Maruti Suzuki India Ltd., New Delhi vs. Addl. CIT, New Delhi

Appeal is allowed

Bench: Shri I.C. Sudhir & Shri L.P. Sahu Assessment Year: 2007-08 Assessment Year: 2007-08 Maruti Suzuki India Ltd., Vs. Additional Cit, Plot No.1, Nelson Mandela Road, Range-6, Vasant Road, New Delhi. New Delhi. (Pan: Aaacm0829Q) (Appellant) (Respondent) Assessee By: S/Shri Ajay Vohra, Sr. Adv. Neeraj Jain, Rohit Jain, Adv. Romit Katyal & Ms. Tejasvi Jain, Cas Department By:Shri Amrendra Kumar, Cit(Dr)

…dismissed vide order dated 16.11.2009 in S.L.P.(C) No.17346 of 2009 CIT v. Munjal Showa Ltd. : 329 ITR 449 (Del)(HC)  CIT v. Denso India P. Ltd.: ITA 16/2008 (Del.) (HC)   CIT v. EKL Appliances Ltd : ITA No 1069/2011 (Del)  CIT v. Hero Honda Motors Ltd: 372 ITR 481(Del) CIT v. Modi Revlon (P) Ltd : 210 Taxman 161(MAG.) (Del HC)   CIT v. Artos Breweries Ltd : [2013] 215 Taxman 80 (AP HC) CIT v. Essel Propack 325 ITR 185 (Bom-HC)  CIT v. Eicher Motors Ltd : 293 ITR 464 (M.P.)   Honda Siel Cars v. ACIT : 111 TTJ 630 (ITAT)  ITO v. Shivani Locks : 118 TTJ 467 (Del ITAT) Goodyear India Ltd. v. ITO : 73 ITD…

Gkn Driveline(India) Ltd., Faridabad vs. ACIT, New Delhi

In the result, the appeal is partly allowed

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2008-09

…t in totality, what emerges is that the Licensee, on such termination, shall be bound to return the know-how acquired from the Licensor, which remains his exclusive property. 16. The Hon’ble jurisdictional High Court in CIT VS. Hero Honda Motors Ltd. (2015) 372 ITR 481 (Del) has held that where the ownership and the intellectual property rights in the knowhow or technical information were never transferred or became an asset of the respondent assessee; the ownership rights were protected by the licensee and the proprietorship in the intellectual property was not conveyed to the assessee but only a limited an…

Gkn Driveline (India) Ltd., Faridabad vs. ACIT, New Delhi

In the result, the appeal is partly allowed

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2007-08

…totality, what emerges is that the Licensee, on such termination, shall be bound to return the know-how acquired from the Licensor, which remains his exclusive property. 15 14. The Hon’ble jurisdictional High Court in CIT VS. Hero Honda Motors Ltd. (2015) 372 ITR 481 (Del) has held that where the ownership and the intellectual property rights in the knowhow or technical information were never transferred or became an asset of the respondent assessee; the ownership rights were protected by the licensee and the proprietorship in the intellectual property was not conveyed to the assessee but only a limited an…

M/S. Honda Siel Power Products Ltd., Gautam Budh Nagar vs. DCIT, New Delhi

In the result, both the appeals of the assessee-company are partly allowed for statistical purposes

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…was further pointed out that the decision of the 46 ITA Nos.551/Del./2014 & 636/Del./2015 Co-ordinate bench of the Tribunal in the case of Hero Moto Corp (supra) has been affirmed by the jurisdictional Delhi High Court in the case of CIT v. Hero Moto Corp in 372 ITR 481. It was submitted that the High Court has also held that payment of royalty and technical guidance fee is allowable business deduction. It was further submitted that the DRP in the subsequent assessment year 2010-11 has deleted identical disallowance proposed by the assessing officer on the basis of the order of the Co-ordinate bench of the Tribu…