TMI Blog2016 (8) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... atian, Sr. Mr. Sanjay Bhowmik Advocate For the Respondent : Mr. Debasish Chaudhuri, Advocate ORDER The Court : The 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 ₹ 30,04,407/- for the assessment year 2005-06 and an expenditure of ₹ 22,91,045 for the assessment year 2006-07. The contention of the assessee was that these were the expenses incurred on account of royalty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9, whereas Mr.Chaudhuri, learned advocate appearing for the revenue relied upon the following clauses of the agreement in support of his contention that the payment was not on account of royalty simplicitor, even assuming that the assessee made any payment on account of royalty. He relied upon 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 recital, he contended that the payment was (a) in lieu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services rendered to the assessee by the said Wim Plast Limited. Since the assessee did not provide particulars of the amounts attributable to the technical services and the amount attributable to royalty, the assessing officer cannot be said to have passed a wrong order in refusing to allow deduction. Mr.Khaitan, on the contrary submitted that these services are also contemplated by Explanation 2 to clause (vi) of sub-section (1) of section 9 of the Income 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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