TMI Blog2012 (7) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... AT) dated 30th September, 2011 whereby its Appeal against the order of the Ld. CIT (Appeals)-XIII, New Delhi was dismissed. 2. The impugned order upheld the view of the CIT (Appeals) vis- -vis, the amounts calculated @ 3% of the net ex-factory sale price paid as royalty to Telkoku Piston Ring Company Ltd., in accordance with its agreement. 3. The reasoning of the Tribunal shows that it disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to certain adjustments. The ld. CIT (A) has examined the agreement and had observed that the license granted by Telkoku Piston Rings Ltd. was non transferable and non-assignable. Under clause 6.1 the assessee had agreed that during the terms of agreement, for 3 years after termination thereof all the information disclosed by Telkoku Piston Rings Ltd. shall be maintained by the assessee in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical information and patents provided by the foreign collaborator could not be treated to have been transferred to the assessee. The assessee received right to use the same for the purpose of business. Hon ble Delhi High Court in the case of CIT v. Sharda Motor Industries Ltd. (supra) has held that the payment of royalty at the rate calculated per piece of production was revenue expenditure. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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