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2015 (1) TMI 824 - HC - Income TaxRoyalty paid to parent Company - Capital v/s Revenue - Held that:- It is not disputed that no new fact or development took place or was taken into account by the A.O. Considering that consistently for 12 years identical payments were treated as revenue expenditure and in fact are entitled to be treated as such this Court is of the opinion that the question of law has to be answered against the revenue - Decided in favour of the assessee. Payments made to M/s Denso Haryana for use of the intranet disallowed - Held that:- The facility was a communication network known as “NICE NET”. The network was availed on cost sharing basis for reporting and communication, and changed to the Denso Group Companies world over. Since it was an actual payment in respect of the service availed by the assessee, the first Appellate authority was of the opinion that there could be no dispute in this regard. The CIT (Appeals), therefore, set aside the observations of the A.O., based upon his surmise that no service was in fact rendered and agreement was itself sham. This Court is of the opinion that findings of the ITAT affirming the conclusions of the CIT (Appeals) are reasonable.- Decided in favour of the assessee. Know-how fees - benefit of Section 35AB - Held that:- Since the depreciation under Section 32(1) is available, in respect of an amount, claimed by the assessee, that it sought benefit under Section 35AB earlier could not have been the only reason to deny it. The revenue can succeed only if it establishes that such depreciation is impermissible in law. The ITAT’s findings are to the contrary. There is no substantial question of law on this aspect.- Decided in favour of the assessee.
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