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2015 (6) TMI 451 - AT - Income TaxReopening of assessment - payment of royalty questioned - CIT(A) deleted reopening - Held that:- the assessee has furnished break-up of sales and royalty agreement inter alia with other details during the course of the original assessment proceedings. Vide letter dt. 4.12.2003 which was submitted on 11.12.2003 once again the assessee has furnished the details of royalty payment alongwith other details. Thus, it can be seen that the payment of royalty has been duly examined by the AO before making the assessment u/s. 143(3) of the Act. After 4 years of making the assessment, reopening of the assessment to verify once again the payment of royalty vis-ŕ-vis sales is nothing but change of opinion and against the ratio laid down by the Hon’ble Supreme Court in the case of Kelvinator of India (2010 (1) TMI 11 - SUPREME COURT OF INDIA). We, therefore decline to interfere with the findings of the Ld. CIT(A). - Decided against revenue. Additions made on account of recalculated sales - CIT(A) deleted addition - Held that:- The undisputed fact is that there is a royalty agreement between the assessee and the Texas based company. It is also an undisputed fact that the payment of royalty is based on sales of grid material. We further find that no evidence whatsoever has been brought on record neither before the First Appellate authority nor before us to show that the assessee has made sales on discounted price. We also find that no such documentary evidences have been verified by the AO during the course of the assessment proceedings. Therefore, in the interest of justice and fair play, we set aside the findings of the Ld. CIT(A) and restore this issue to the file of the AO for denovo assessment. The assessee is directed to file necessary details alongwith supporting documentary evidences to justify that it has made sales at discounted price, to justify that there is no nexus between sales in India of grid material and the payment of royalty to Grid International Inc Texas USA. The assessee is further directed to substantiate its claim by bringing cogent material evidence on record to show that sales in India of Grid material is not based on US list price. - Decided in favour of revenue for statistical purpose
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