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2018 (6) TMI 1389 - AT - Income TaxRevision u/s 263 - payment of royalty - Held that:- There is no dispute that the assessee is paying royalty since the year 2000. The A.Y under consideration is A.Y 2011-12 which means that since the last 10 years Revenue has been accepting the payment of royalty as legitimate revenue expenditure. No new facts have come into existence nor the law has changed. Therefore, the ratio laid down by the Hon'ble Supreme Court in the case of Radhaswami Satsang [1991 (11) TMI 2 - SUPREME COURT] squarely applies. Further, the PCIT’s decision is solely based upon the decision in the case of sister concern Honda SIEL. As mentioned elsewhere the assessee is in existence since the year 2000 and has been paying royalty since past 11 years. Considering the facts of the case in hand, vis a vis the decisions considered by the ld. PCIT for assuming jurisdiction u/s 263 of the Act, we are of the considered opinion that the PCIT has erred in assuming jurisdiction in as much as he has considered the facts of the case of the sister concern without appreciating the facts of the case in hand in true perspective. We are of the considered opinion that the assessment order framed u/s 143(3) of the Act is neither erroneous nor prejudicial to the interest of the Revenue. - Decided in favour of assessee.
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