Honda Siel Cars India Ltd. v. CIT, Ghaziabad

MICROSOFT CORPORATION (INDIA) PRIVATE LIMITED,NEW DELHI vs. PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI

In the result, appeal filed by the assessee is allowed

…para 3.1 of the show cause notice wherein it is observed by Ld. PCIT that Royalty expenditure incurred is capital in nature and further reliance was placed on the judgement of Hon’ble Supreme Court in the case of Honda Seil Cars India Ltd. vs. CIT reported in 395 ITR 713 (SC) wherein the Hon’ble Supreme Court held that “if the assessee was already in that particular line of business and royalty was paid for transfer of technical knowhow which only improvise/enhance its technical capacity, can be said to be revenue in nature; but if the royalty is paid for transfer of proprietary rights in the technical knowhow on…

ACIT, CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA P.LTD, GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA PVT LTD(SUCCESSOR OF FCC RICO LTD.), GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA PVT LTD(SUCCESSOR OF FCC RICO LTD.), GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA PVT LTD(SUCCESSOR OF FCC RICO LTD.), GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT, CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA P.LTD, GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT, CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA P.LTD, GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

ACIT, CIRCLE-9(1), NEW DELHI vs. FCC CLUTCH INDIA P.LTD, GURGAON

In the result, all the appeals of revenue are dismissed

Bench: Shri R.K. Panda & Shri Amit Shukla

…ts granted by the agreement were exclusive, non-transferreable and would continue post termination of the agreement. 4. Reliance is placed on the order of the Hon’ble Supreme Court in the case of Honda Siel Cars India Ltd. V. CIT, Ghaziabad dated 09-06-2017 (395 ITR 713). The facts of the case are similar to the assesese. In the said case also the assesse i.e Honda Siel Cars India Ltd. Was newly created on the basis of the JV agreement. The assesse was granted indivisible and non-transferable right to manufacture in India. The appellant had during the currency of the agreement only the right to access the techni…

HONDA MOTORCYCLE & SCOOTER INDIA PVT LTD,GURGAON vs. DCIT CIRCLE- 2(1), GURGAON

In the result, appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Honda Motorcycle & Scooter Vs. Dcit, India Pvt. Ltd, Circle-2(1), Commercial Complex-Ii, Sector- Gurgaon 49 To 50, Gold Course Road, Extn Road, Gurgaon Pan: Aaach7467D (Appellant) (Respondent)

…DR vehemently opposed the above submission and submitted that on the issue relating to the capitalization of royalty, the coordinate bench has directed to file a copy of the judgment of Honourable Supreme Court in case of Honda Sivakasi India Ltd versus CIT (395 ITR 713 (2017) (SC) and also copy of the technical knowhow agreement dated 13 July 2000 between the assessee and M/s Honda motor Co Ltd Japan. The relevant paragraphs number 23 – 25 of the above judgment of the honourable Supreme Court in article 15 and article 17 of the above agreement as an relied upon by the learned and CIT DR may be considered proper…

HONDA MOTORCYCLE AND SCOOTERS INDIA PVT. LTD.,GURUGRAM vs. DCIT, CIRCLE- 2(1), GURUGRAM

In the result, both the appeals filed by the assessee are allowed

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble(Through Video Conferencing)

…see, the same was allowable as business deduction under section 37(1) of the Act. 36. The Assessing Officer while disallowing the claim of the assessee has strongly placed reliance on the decision of Hon’ble Supreme Court in Honda Siel Cars India Ltd. vs CIT [395 ITR 713] (SC). However, the facts of the said case are distinct as in the facts of the said case expenditure was on account of setting up of manufacturing facility and was not for running of the business. The Tribunal in assessee’s own case for Assessment Year 2011-12 while deciding the issue in appeal filed against the order passed u / s 263 of the Act…

HONDA MOTORCYCLE AND SCOOTER INDIA PVT. LTD.,GURGAON vs. DCIT, CIRCLE- 2(1), GURGAON

In the result, the appeal of the assessee is allowed

Bench: Ms. Sushma Chowla, Vp & Shri N.K.Billaiya, Am आयकर अपील सं. / Ita No.7714/Del/2017 "नधा"रण वष" /Assessment Year 2012-13

…, the same was allowable as business deduction under section 37(1) of the Act. 36. The Assessing Officer while disallowing the claim of the assessee has strongly placed reliance on the decision of Hon’ble Supreme Court in Honda Siel Cars India Ltd. vs CIT [395 ITR 713] (SC). However, the facts of the said case are distinct as in the facts of the said case expenditure was on account of setting up of manufacturing facility and was not for running of the business. The Tribunal in assessee’s own case for Assessment Year 2011-12 while deciding the issue in appeal filed against the order passed u/s 263 of the Act…

DCIT(LTU), NEW DELHI vs. M/S. HONDA CARS INDIA LTD., GREATER NOIDA

In the result, appeal filed by Revenue is dismissed, as far as Ground No

Bench: Shri H.S. Sidhu & Shri Anadee Nath Misshra

…eam. The assessee after accepting notice relied upon a previous judgment of the Supreme Court for Assessment Year (A.Y.) 1999- 2000, 2001-2002, 2003-2004 and 2005-2006 (reported as Honda Siel Cars India Limited Vs. Commissioner of Income Tax, Ghaziabad (2017) 395 ITR 713). It is submitted that although in respect of the past agreement, the amount paid (towards royalty and technical fee) in that case amounted to capital or revenue expenditure, the Court rejected the assessee’s contention that the expenditure was revenue and at the same time in the later part of its judgment, upheld the reasoning of this Court for…

THE COMMISSIONER OF INCOME TAX-LTU vs. HONDA CARS INDIA LTD.

The appeal is partly allowed in the above terms

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

…The assessee after accepting notice relied upon a previous judgment of the Supreme Court for Assessment Year (A.Y.) 1999- 2000, 2001-2002, 2003-2004 and 2005-2006 (reported as Honda Siel Cars India Limited Vs. Commissioner of Income Tax, Ghaziabad (2017) 395 ITR 713). It is submitted that although in respect of the past agreement, the amount paid (towards royalty and technical fee) in that case amounted to capital or revenue expenditure, the Court rejected the assessee’s contention that the expenditure was revenue and at the same time in the later part of its judgment, upheld the reasoning of this Co…

M/S HILTON ROULUNDS LTD. vs. COMMISSIONER OF INCOME TAX

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

…ght to use the mark was granted in perpetuity. Thus, when the payment of Rs.1 Crore was made, the benefit that was acquired was of an enduring nature. He places heavy reliance on a recent judgment of the Supreme Court in Honda Siel Cars Ltd. v. CIT, (2017) 395 ITR 713 (SC) (hereinafter, „Honda Siel‟) wherein it has been held as under: “3. The dispute which has arisen is as to whether the said technical fee of 30.5 million US Dollar payable in ITA 325 2005 Page 11 of 30 five equ…