TMI Blog2012 (2) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... aim was admissible u/s 37 r.w.s. 28 of the Act – Decided against the Revenue. - ITA 1069/2011 - - - Dated:- 22-2-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V.EASWAR, JJ. For Appellant: Mr. Kamal Sawhney, Sr. Standing Counsel Mr. Amit Shrivastava, Advocate. For Respondent: Mr. V.P. Gupta, Mr. Bassant Kumar Mr. Anuj Bansal, Advocates. O R D E R This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short) relates to assessment year 2002-03 and arises out of the order of the Income Tax Appellate Tribunal (tribunal, for short) dated 11th February, 2011 in ITA No. 3895/Del/2010. 2. Pursuant to the order passed by the Commissioner of Income Tax (Appeals) under Section 263 of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation. The CIT(Appeals) referred to the terms of the agreement and has recorded that the assessee had not secured any exclusive privilege to either manufacture or sell the products. The right to use technology and technical information was for prescribed period and not perpetual. No benefit or right accrued in perpetuity. 7. The tribunal in the impugned order has accepted the reasoning given by the CIT(Appeals). 8. The aforesaid conclusion of the tribunal is in accord with the decision of the Supreme Court in CIT versus Ciba of India Limited, (1968) 69 ITR 692 (SC) and their subsequent decision in the Commissioner of Income Tax versus I.A.E.C. (Pumps) Limited, (1998) 232 ITR 316 (SC). Referring to these decisions, a Division Bench of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly relatable to services which were in the revenue field and were allowable as revenue expenditure. In the case of Goodyear (I) Ltd. Vs. ITO 73 ITD 189(Delhi), the assessee had not acquired ownership right of technical knowhow but transfer of use of licenses. There was no advantage of enduring nature and hence it was held to be a case of revenue expenditure. In the case of Travancore Sugar and Chemicals Ltd. 62 ITR 566 (SC) it was held that whenever a payment is based on a percentage of turnover or profits, it necessarily has no relation to the capital value of the asset, because it cannot be known at the time of the agreement what the turnover or profits will be over a period of years. In another case reported as DCIT Vs. Swaraj Engi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Revenue is in respect of addition of Rs.66,86,974/- made by the Assessing Officer disallowing the entry made by the assessee in books towards doubtful debts/advances. The Assessing Officer disallowed the said claim holding as under:- The claim of the assessee cannot be allowed as no details regarding these expenses have been filed, whether these were actually trade debts incurred in the course of business, what steps were taken to recover the amount and why these have been written off. Hence the amount of Rs.66,86,974/- is disallowed and added to the income of the assessee. 11. The aforesaid findings given by the Assessing Officer are cryptic and devoid of any reasoning. The CIT(Appeals) had asked for a remand report in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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