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2018 (5) TMI 1875 - HC - Income TaxCharacterization of expenses - Payment of royalty and lump sum fee - capital or revenue expenditure - assessee contends that for A.Y. 2010-2011 similar payments were held to be revenue in nature relying on HONDA SIEL CARS INDIA LTD. VERSUS COMMISSIONER OF INCOME TAX, GHAZIABAD [2017 (6) TMI 524 - SUPREME COURT] - HELD THAT:- The discussion of the lower appellate authority i.e. the CIT(A) and the ITAT would disclose that they went by the previous assessment year’s decisions for A.Y. 2003-2004. The assessee entered into a new agreement in 2005. In these given circumstances, the omission by the lower appellate authorities is erroneous. The issue is therefore remitted for reconsideration by the ITAT which shall proceed to decide the question whether the payments made towards model fee/running royalty – characterised – lump sum payment, by the ITAT in the impugned order fall in the revenue or capital stream. Appeal is partly allowed in the above terms. Parties shall appear before the ITAT on 21st May, 2018.
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