TMI Blog2014 (1) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... J. For the Appellant : Shri T N Betgeri, JCIT For the Respondent : Shri S Raghunathan, Adv. ORDER:- PER : Vikas Awasthy The appeal has been filed by the Revenue against the order of the Commissioner of Income Tax(Appeals)-I, Coimbatore dated 10-01-2013 relevant to the Assessment Year (AY) 2004-05. 2. The assessee-company is engaged in the business of manufacturing of automobile components. The assessee filed its return of income for the AY.2004-05 on 21-10-2004 declaring its income as Rs.1,13,72,682/-. The assessment order u/s. 143(3) of the Income Tax Act, 1961 (herein after referred to as the Act ) was passed in the case of assessee on 04-10-2006. Re-assessment proceedings were initiated against the assessee and noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture, use and sell licensed products in the contract territory and nonexclusive right to sell the licensed products to any country in the world. The ld. DR pointed out that the technical license agreement clearly states that assessee shall pay lump sum or actual for technical guidance for acquiring the technical information in respect of the licensed products, therefore, the expenditure is to be treated as capital in nature. The ld. DR vehemently prayed for setting aside the impugned order and restore the findings of the Assessing Officer. In order to support his contentions, the ld. DR relied on the following judgments: i. CIT Vs. Polyformalin (P) Ltd., reported as 161 ITR 36 (Kerala) ii. Fenner Woodroffe Co. Ltd., Vs. CIT r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue in appeal is with regard to Rs.27,04,800/- dis-allowed by the Assessing Officer as revenue expenditure and treating the same as capital in nature. The payments have been made towards reimbursement of expenditure of the technical persons/engineers of the Korean Company visiting the assesseecompany for providing technical support. We have perused the Technical License Agreement dated 01-05-2003 entered into between Hyundum Industrial Company Limited, Korea and the assessee. Article-4 of the agreement gives the details of the Technical Assistance and Services to be provided by the Korean company to the assessee, which includes, drawings for designing, manufacturing and assembly, specifications, list of materials, general calculation she ..... X X X X Extracts X X X X X X X X Extracts X X X X
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