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2017 (9) TMI 1157 - AT - Income TaxPayment for use of technical knowhow and trademark - nature of expenditure - revenue expenditure or capital expenditure - Held that:- Since the Assessing Officer has followed the orders for assessment year 2008-09 while treating the royalty expenditure as capital in nature and since the Tribunal has already decided the issue in favour of the assessee, therefore, respectfully following the consistent decision of the Tribunal in assesse’s own case and in absence of any contrary material brought to our notice by the ld. DR, we hold that the payment of royalty by the assessee to its AE – GKN Driveline International GMBH, Germany and logo fee paid to the AE – GKN holding Plc. as revenue in nature. Thus, the grounds raised by the assessee are allowed Provision for warranty claim - allowable expenditure - Held that:- Respectfully following the decision of the Tribunal in assessee’s own case as well as the decision of the Hon'ble Supreme Court in the case of Rotork Controls India P. Ltd. (2009 (5) TMI 16 - SUPREME COURT OF INDIA) we hold that the provision for warranty claim is an allowable expenditure. The ground raised by the assessee is allowed and the ground raised by the Revenue is dismissed.
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