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2016 (7) TMI 1272 - HC - Income TaxInclusion of Modvat in opening stock in the light of section 145A - Held that:- The impugned order of the Tribunal while allowing the respondent assessee's appeal on this issue restored the issue for fresh examination by the Assessing Officer. This was done by following the decision of its coordinate bench on the same issue in respect of the same respondent assessee, dated 18th January, 2013 relating to Assessment Year 1999-2000. Addition on account of royalty payment made to Johnson & Johnson USA persons referred to u/s. 40A(2)(b) - whether the assessee had not discharged its onus to prove the reasonableness of such payments? - Held that:- The revenue seeks to put the onus on the Respondent-assessee to establish that the payment made on royalty was reasonable. Further, on facts, both the CIT(A) as well as the Tribunal has concluded that there is no evidence to characterize the payment as excessive.In the above view, the view taken by the impugned order of the Tribunal in upholding the order of the CIT(A), that the payment of royalty made the Associated Enterprises is not excessive, is a finding of fact which is not shown to be perverse Depreciation on testing equipment provided to laboratories and hospitals free of charge even though such testing instruments were not used by the Assessee - Held that:- The impugned order of the Tribunal has allowed the claim of the respondent-assessee for depreciation on testing equipment by following its decision in the case of M/s. N R Jet Enterprises Ltd.,(sister concern of the respondentassessee). No distinguishing features in the present facts from the decision of the Tribunal in M/s. N. R. Jet Enterprises Ltd.,(supra) pointed out. In the above view, as the Tribunal has merely followed its earlier order and the same has not been shown to us as inapplicable to the present facts. Entrance fees payment and club membership - revenue v/s capital expenditure - Held that:- Tribunal by the impugned order correctly upheld the order the CIT(A)as deleted the addition holding that the issue is settled by the decision of this Court in Otis Electricity v/s. CIT [1991 (4) TMI 53 - BOMBAY High Court ].
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