TMI Blog2015 (2) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... ces to be rendered by the assessee to Unilever group of companies for which ‘fees’ have been provided. We, further find that there is a specific clause in this agreement relating to ‘intellectual property rights’. We find that none of the revenue authorities have considered the facts of the case in the light of this agreement of the assessee. The AO is directed to decide this issue afreshn the light of clause (III) in the agreement dt. 16.11.2000 under the head “intellectual property rights”. - While deciding this issue afresh, the AO is also directed to consider the additional plea of the assessee u/s. 35(1)(ii) and Sec. 35(1)(iv) of the Act as per provisions of law - Decided in favour of assessee for statistical purpose. Disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments during the year to the following institutions for technical services rendered by them as capital expenses in nature. 1) Indian Institute of Science - ₹ 45,37,678/- 2) Indian Institute of Technology - ₹ 22,65,805/- 3) All India Institute of Medical - ₹ 3,25,000/- 3. Briefly stated the facts of the case are that the assessee is engaged in the business of providing research related services. The return for the year was filed on 21.11.2000 declaring total income at ₹ 3,15,80,590/-. The return was selected for scrutiny assessment and statutory notices were issued and served upon the assessee. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greements with the parties and confirmed the findings of the AO. 6. Aggrieved by this, the assessee is before us. The Ld. Senior Counsel pointed out that one of the objects of the assessee company is to undertake, establish, provide and conduct scientific technical and industrial research. In furtherance of its business, the assessee entered into an agreement with Unilever PLC and Unilever N.V. As per this agreement, it was agreed that the assessee shall provide such services as may be required by Unilever from time to time including but limited to research and development in the areas of fundamental research. Pursuant to this agreement with Unilever, the assessee proceeded by entering into agreement with the impugned parties. It is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty rights . We find that none of the revenue authorities have considered the facts of the case in the light of this agreement of the assessee. In our considered opinion, the matter needs to be decided afresh in the light of this agreement dt. 16.11.2000. 8.1 In the interest of justice and fair play, we restore this issue to the file of the AO. The AO is directed to decide this issue afresh considering the agreement dt. 16.11.2000 vis-a-vis objects of the assessee as per Memorandum of Association , after giving reasonable and fair opportunity of being heard to the assessee. 8.2. While deciding this issue afresh, the AO is also directed to consider the additional plea of the assessee u/s. 35(1)(ii) and Sec. 35(1)(iv) of the Act as per p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issues being identical with that of ground No. 1 in ITA No. 5461/M/04 for A.Y. 2000-01. Therefore, on similar lines and for similar reasons, this ground raised by the assessee is allowed for statistical purpose. 13. While deciding this issue afresh, the AO is also directed to consider the additional plea of the assessee u/s. 35(1)(ii) and Sec. 35(1)(iv) of the Act as per provisions of law. Ground No. 1 alongwith additional grounds are allowed for statistical purpose. 13.1. The appeal filed by the assessee is allowed for statistical purpose. ITA No. 996/M/2006 - A.Y. 2002-03 14. The following payments have been considered as capital in nature. The Ld. CIT(A) failed to appreciate that the appellant during the normal course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the dividend income. 18. The Ld. CIT(A) has considered this issue at para-9 of his order wherein the Ld. CIT(A) has followed the decision of the Hon ble Supreme Court in the case of CIT Vs United General Trust ltd. 200 ITR 488(SC) and also the decision of the Hon ble Calcutta High Court in the case of National Insurance Co. Ltd. 159 ITR 314. We find that the assessee has not allocated any expenditure for earning the exempt income, therefore, the AO was required to disallow certain expenses relatable to exempt income on proportionate basis for which the AO has disallowed 5% of the dividend income. The disallowance being very reasonable, we do not find any reason to interfere with the findings of the Ld. CIT(A). This ground of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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