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2011 (4) TMI 509 - AT - Income TaxRevision - Rectification of mistakes - The assessee is engaged in the business activity of manufacturing of power distribution transformers - during the course of assessment proceedings the assessee company was neither asked for any explanation regarding the entire one time technology transfer fee of Rs. 4,64,25,000/- nor any explanation in this regard was ever furnished by the assessee company - The position and function of the ITO is very different from that of a civil court - it is clear that the order can be termed to be erroneous if no inquiry is conducted by the Assessing Officer which was required to be called for - as per well established law, reduction of loss also is at par with enhancement in taxable income, hence, it cannot be said that no prejudice can be caused to the revenue if there are sufficient brought forward losses to set of current addition If the entire agreement is to be seen in the terms of obligations of the licensor vis-a-vis licensee, it can be observed that two types of revenue comes to the licensor; one is regarding one time technology transfer cost and the other is royalty earned during the subsistence of the agreement - the assessee has not been able to show that it has to incur or it has incurred any of the expenditures relating to the receipt of USD 1 million which has been received by the assessee in the shape of one time technology transfer cost - In the result, the appeal filed by the assessee is dismissed
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