Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Commissioner of Income Tax-III Versus SMCC Construction India Limited

2015 (7) TMI 740 - DELHI HIGH COURT

Excessive depreciation for the UPS and Inverters - Held that:- As it is sought to be urged by the Revenue that under Section 32(1) unless the assessee was able to show that the concerned UPS and computer peripherals have been used for more than 180 days in the previous year, it could not have claimed higher rate of depreciation @ 60%. The Court finds that the above ground urged by the Revenue ought to have been based on the factual determination as to whether with reference to the actual dates o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ded against revenue.

Fees and royalties for technical knowhow - whether be treated as revenue/business expenditure? - Held that:- A perusal of the TCA shows that the payment by the Assessee to SMCL is for the technical knowhow given to the Assessee as a Licensee. Although the payment is spread over a period of 10 years, it does not make the Assessee the owner of the technical knowhow. The very nature of the license agreement is that it is not of a permanent nature. The view taken by t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Mehta,JJ. For the Appellant : Mr Kamal Sawhney and Mr Raghvendra Singh, Advs. For the Respondent : Mr Abhimanyu Jhamba and Mr Vikrant Suri, Advs. ORDER 1. The challenge in these appeals by the CIT is to the orders passed by the Income Tax Appellate Tribunal ('ITAT') in appeals arising out of assessment orders pertaining to the Respondent Assessee for the Assessment Years (AYs), i.e., 2008-09, 2009-10 and 2010-11. 2. The common question that arose for determination in the aforesaid AYs w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d not have claimed higher rate of depreciation @ 60%. The Court finds that the above ground urged by the Revenue ought to have been based on the factual determination as to whether with reference to the actual dates of purchase of the concerned UPS and computer peripherals, it could be demonstrated that the assessee could not have used such UPS and computer peripherals for more than 180 days in the relevant previous year. However, no such factual determination appears to have been undertaken eit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cribed as a Licensor and the Assessee as the Licensee. The TCA notes that there are three broad kinds of services in which the Licensor and the Licensee are engaged, i.e. provision of construction management services, turnkey contract service and the consultancy services including project management. Under Article 2 of the TCA, technical assistance is to be rendered by the Licensor to the Licensee. Under Article 3, the Licensor was to train the Licensee's personnel. Under Article 5, technica .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncurred by the Assessee in terms of the aforesaid TCA was capital or revenue expenditure. The question was answered by the AO against the Assessee. Aggrieved by the said order, the Assessee appealed to the CIT (Appeals). A specific issue before the CIT (Appeals) was the justification for the AO having added the amount paid by the Assessee to SMCL on account of royalty and fees for technical assistance. CIT (Appeals) came to the conclusion that by incurring the said expenditure, no benefit was ob .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version