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TMI Blog2016 (8) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... subject matter of challenge in the appeal is a judgment and order dated 9th October, 2009 in ITA No.317/Kol/2009 pertaining to the assessment year 2005-06 and ITA No.318/Kol/2009 pertaining to the assessment year 2006-07 by which the learned Income Tax Appellate Tribunal "B" Bench, Kolkata allowed the appeals preferred by the revenue. The assessing officer disallowed an expenditure of a sum of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and proper construction of Explanation 2 to each of the clauses (vi) and (vii) of section 9(i), section 40(a)(ia) and section 194J of the Income Tax Act, 1961, and the agreement dated April 1, 2004 between the appellant and the trade mark owner, the Tribunal was justified in law in holding that the payment made to the trade mark owner was not royalty and was to be disallowed under section 40(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following parts of the agreement. "WHEREAS, you M/s. NATIONAL PLASTO PRODUCTS P. LTD. Jalan Industrial Estate, Baniyara, P.S. Domjur, Howrah - 711 411 are interested in technical know-how use of "Cello" Trademark for plastic items and moulds and we are willing to grant licence to use "Cello" trademark and to provide technical know-how and to supply moulds to you." From the aforesaid recita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses of ours, for procuring accessories like colour pigment, stickers, metal parts etc. at your request. We will either supply you or will help in identifying the supplier for all above items at your request. The purchase price and all other related expenses should be borne by you." In the aforesaid background, he drew our attention to section 194J which during the assessment year 2005-06 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act. Considering that the question needs some investigation in the facts of the case, we are inclined to allow the appeal for the limited purpose of remanding the matter to the learned Tribunal for the purpose of considering whether the services provided by the recipient of the aforesaid sum of Rs. 30,04,407/- and Rs. 22,91,045 are covered by Explanation 2 to clause (vi) of sub-section (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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