Shriram Refrigeration Industries Ltd. v. CIT

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

…n by the Supreme Court and High Court and in due deference to decisions in the case of Alembic Chemical Works Co Ltd v CIT, 177 ITR 377 (SC) supra and Delhi High Court in the case of CIT v JK Synthetics Ltd 309 ITR 371, Shri Refrigeration Industries Ltd v CIT 127 ITR 746, Triveni Engr Works Ltd v CIT 136 ITR 340 Ciba of India 69 ITR 692 Hon'ble Supreme Court and other DRP concludes that royalty paid is revenue in nature. AO is directed to allow it accordingly.” 9. The above decision of DRP has been accepted by the Revenue and has become final. In view of the above, we do not find any infirmity in the order of le…

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)

… ITR 377 (SC)  CIT v Shriram Pistons and Rings Limited -CC 12154/2009 (Supreme Court) Shriram Pistons and Rings Limited v. CIT: 219 CTR 228 (Del)  Shriram Pistons and Rings Limited v. CIT 307 ITR 363 (Del)   Shriram Refrigeration Industries Ltd. v. CIT: 127 ITR 746(Del)  Triveni Engineering Works Ltd. v. CIT 136 ITR 340 (Del) CIT vs. Prem Heavy Engineering Works P. Limited (2006) 282 ITR 11 (All.)   CIT v Sharda Motor Industrial Limited: 319 ITR 109 (Del) Climate Systems India Limited v. CIT : 319 ITR 113 (Del.) Shriram Pistons and Rings Limited v CIT 307 ITR 363 (Del)   CIT v Lumax Industries Limited…

DCIT, New Delhi vs. M/S. Essel Shyam Technologies Ltd., New Delhi

In the result, the appeal of the Revenue is allowed for statistical purposes and the

Bench: Smt Diva Singh & Sh.L.P.Sahu

…w 25% of such royalty payment. 4. AO has not explained as to how the appellant will be benefitted for life time. Therefore, in view of above facts and the decisions of CIT vs Kanpur Cigarettes P. Ltd. (2005) 287 ITR 485 and Shriram Refrigeration vs CIT (1981) 127 ITR 746, I am convinced that such payment of royalty is revenue expenditure fully allowable. Therefore this ground of appeal is allowed.” 6. Accordingly in the absence of any discussion on the specific agreement, the prayer of the parties was found to be justified. In view thereof, the issue is restored to the file of the AO with the direction to pass a…

Hcl Ltd vs. The Commissioner of Income-Tax

…y in favour of the Indian assessee as the said secret processes were not sold, but right to use was granted for a limited time. Reference was made to the decision of this Court in Triveni Engineering Works Limited versus Commissioner of Income Tax, (1982) 136 ITR 340 (Del.) to draw a distinction between outright sale and supply of technical information and details with the copyright and the intellectual property rights remaining with the foreign company. In the said case, agreement was valid for ten years, but could be terminated earlier and was limited to India. The agreement stipulated that documents…

Hcl Limited

…y in favour of the Indian assessee as the said secret processes were not sold, but right to use was granted for a limited time. Reference was made to the decision of this Court in Triveni Engineering Works Limited versus Commissioner of Income Tax, (1982) 136 ITR 340 (Del.) to draw a distinction between outright sale and supply of technical information and details with the copyright and the intellectual property rights remaining with the foreign company. In the said case, agreement was valid for ten years, but could be terminated earlier and was limited to India. The agreement stipulated that documents…

Commissioner of Income Tax-IV vs. Hero Honda Motors Limited

…se of know-how etc., and whether it would be determinative and crucial, when we answer whether it is a case of outright transfer or mere access or right to use, was considered by the Delhi High Court in Shriram Refrigeration Industries Ltd. vs. CIT (1981) 127 ITR 746 (Del). In the said case, the Indian assessee had been granted non-divisible, non-transferable and non- assignable licence in respect of technical knowledge and secret process for manufacture of sealed compressors, without right to sub-licence except with the consent of the grantor. The agreement, it was observed, contemplated that it would c…

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

…fter perusing the clauses of the agreement and relying upon the decisions in CIBA of India Ltd., (supra), Alembic Chemical Works Co. Ltd. (supra), CIT v. Associated Cement Companies Ltd., [1988] 172 ITR 257 and Triveni Engineering Works Ltd. v. CIT, [1982] 136 ITR 340, the Bench came to hold as follows: “Applying the various principles that have been laid down, we find that there was in fact no absolute transfer of any right in the documentation given by Riken to the assessee. The assessee was entitled to use the technical know-how for a period of five years or for a lesser period, in case the agreement…

The Commissioner of Income Tax-II vs. Munjal Showa Ltd

Accordingly, they are dismissed without any order as to

…fter perusing the clauses of the agreement and relying upon the decisions in CIBA of India Ltd., (supra), Alembic Chemical Works Co. Ltd. (supra), CIT v. Associated Cement Companies Ltd., [1988] 172 ITR 257 and Triveni Engineering Works Ltd. v. CIT, [1982] 136 ITR 340, the Bench came to hold as follows: “Applying the various principles that have been laid down, we find that there was in fact no absolute transfer of any right in the documentation given by Riken to the assessee. The assessee was entitled to use the technical know-how for a period of five years or for a lesser period, in case the agreement…