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2023 (1) TMI 723 - DELHI HIGH COURTDeduction u/s 80-IB - sub-licence fee - reallocating expenditure/income on account of royalty from Jammu Unit to Corporate Division - HELD THAT- As decided in 2018 (9) TMI 1629 - DELHI HIGH COURT Montage Enterprises Pvt. Ltd matter requires reexamination by the Tribunal on the question, whether the Jammu Unit had utilized the technical know-how provided to the respondent assessee company under the MoUs. Till this core and important aspect and question is decided, we cannot proceed and decide, the other question whether the expenditure on royalty was incurred by the Jammu Unit or the Corporate Office. In view of the aforesaid finding in the appeal filed by the Assessee, the Tribunal did not decide the cross appeal filed by the Revenue challenging order passed by Commissioner of Income Tax (Appeals), allowing netting of royalty received from royalty paid for computation of deduction under Section 80-IB of the Act. As we have remanded the issue of deduction under Section 80-IB, it will be open to the Assessee to press their cross appeal before the Tribunal in case of an adverse finding against the assessee on the first issue. The directions contained in Montage Enterprises Pvt. Ltd. will apply mutatis mutandis in respect of the instant appeals as well. The matters are, thus, remitted to the Tribunal for a fresh adjudication.
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