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2018 (7) TMI 1822 - HC - Income TaxDisallowance of the royalty payment made to G4S NAMESA - whether the same was not incurred wholly and exclusively for the purpose of business under Section 37? - Held that:- We find that, CIT (A) and the Tribunal have both rendered finding of fact that the respondent-assessee has not led any evidence before it to establish the manner in which the technical knowhow as acquired from G4S NAMESA has been used in the business of the respondent. The authorities have also held that the Incident Report Format produced on account of ERP obtained from an Associated Enterprise to whom the payment was made, was infact being carried out by the appellant even prior to entering into an agreement dated 27th December, 2007 with G4S. The concurrent finding recorded is that the assessee had offered no explanation as to the manner in which the agreement had helped the assessee to carry out its business. These are findings of facts. Thus, mere entering into an agreement with it being actually put to use cannot lead to the conclusion that the payment made under the Agreement was for knowledge to be used in its business. - Decided against assessee.
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