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2024 (2) TMI 1103 - AT - Income TaxDeduction u/s 80IC - disallowance of deduction as products manufactured by assessee falling under the negative list - CIT (A) decided the issue in favour of the assessee - HELD THAT - Since ld. CIT (A) has followed earlier order of CIT (A) which has been upheld by the ITAT we uphold the order of the ld. CIT (A) on this issue as held products manufactured by the appellant viz. Pillar Filler and OGX do not fall under the negative list contained in the Thirteenth Schedule and therefore the appellant is entitled to deduction under section 80IC of the Act. Therefore maintaining judicial discipline and respectfully following the decision of ld. CIT (A) the appeal on this ground is allowed. Decided in favour of assessee. Nature of expenses - disallowance of royalty expenditure holding the same to be capital in nature as covered within the meaning of intangible asset u/s 32(1)(ii) of the Act after allowing depreciation @ 25% thereon - CIT (A) deleted the disallowance following the orders passed by the Tribunal in assessee s own case in earlier years - HELD THAT - As this issue is squarely covered by the following decisions of M/s. Henkel Teroson India Ltd 2012 (3) TMI 723 - ITAT DELHI M/s. Henkel Teroson India Ltd 2016 (7) TMI 1694 - ITAT DELHI and M/s. Henkel Teroson India Ltd 2018 (4) TMI 1971 - ITAT DLEHI - Respectfully following the precedent as above we do not find any infirmity in the order of the ld. CIT (A). Accordingly we uphold the same on this issue. Restriction of tax paid u/s 115-O @ 10% in terms of Article 10 of the DTAA between India and Germany - HELD THAT - On this issue we note that this issue has been raised for the first time before the ITAT by way of cross objections. Assessee at the outset admitted that this issue has been decided in the case of DCIT vs. Total Oil India Pvt. Ltd. 2023 (4) TMI 988 - ITAT MUMBAI (SB) wherein it has been held that the beneficial rate for taxation of dividend under application DTAAs is not applicable on the DDT paid on dividends inasmuch as DDT is an additional income tax in the hands of the company and not the shareholder i.e. DDT is a tax liability of the company on the profits it seeks to distribute as dividend and not income in the hands of the shareholder with incidence of payment of tax on the company. Accordingly following the precedent we reject this objection raised by the assessee.
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