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2010 (3) TMI 845 - ITAT DELHIDisallowance of 40 per cent. of royalty - royalty amount was considered as excessive and not an expenditure incurred wholly and exclusively for the purpose of business - Held that:- disallowance of royalty payments made by the Assessing Officer and confirmed by the learned Commissioner of Income-tax (Appeals) was not justified, therefore, direct to delete the same, appeal of the Revenue is dismissed. Remuneration paid for technical assistance - whether both the Assessing Officer in the assessment order for the assessment year 1997-98 and the learned Commissioner of Income-tax (Appeals) in the appellate order for the assessment year 1998-99 are justified in their conclusion that the assessee in collusion with parent company in Switzerland adopted a colourable device whereby the profits of Indian company were siphoned away to be aggrandised by the Swiss company - Held that:- burden to prove that the claim of expenditure was a colourable device or a camouflage for diversion of profits rested upon the Revenue. In the order of the authorities below, no material has been brought on record except disbelieving the assessee's explanation and their subjective opinions, assessment order for the assessment year 1997-98 and the learned Assessing Officer as well as the Commissioner of Income-tax (Appeals) for the assessment year 1998-99 have argued without adequate material that the assessee might have taken the advantage of liberalisation of industrial policy from the year 1991 in judicial proceedings, suspicion howsoever strong cannot take place of material/evidence, disallowance of the assessee' s claim of deduction on account of remuneration paid for technical assistance is not called for in both the assessment years 1997-98 and 1998-99. appeal of the Revenue is dismissed.
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