TMI Blog2005 (8) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... he IT Act, 1961 (the 'Act'), at the instance of the CIT, Baroda: Common question for asst. yrs. 1982-83 to 1984-85 : Whether, the Tribunal is right in law and on facts in holding that the assessee is entitled to deduction in respect of royalty paid to Enertom Systems at the rate of 2 per cent on the sale of bellow expansion joints ? Question for asst. yr. 1984-85 only : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by treating the payment as outright purchase of technical know-how. The assessee carried the matter in second appeal before the Tribunal. It was contended before the Tribunal that payment of royalty was in the nature of revenue expenditure as it was akin to license fee. The Tribunal accepted the submission vide its order dt. 30th July, 1992, by observing as under : 'The case of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assessee. 6. It is an admitted fact that the royalty agreement is not on record. It is not possible to state that the Tribunal has committed any error in interpreting the document in absence of the availability of the document. The agreement was entered into on 12th Sept., 1979. The AO has observed in the assessment order that the royalty payment was disallowed in the earlier year. However, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as question No. 2 is concerned, the learned standing counsel has submitted that the issue raised by the said question stands concluded in favour of the assessee by the apex Court decision in the case of Allied Motors (P) Ltd. vs. CIT (1997) 139 CTR (SC) 364: (1997) 224 ITR 677(SC). Following ratio of the said decision it is held that the Tribunal was right in law and on facts in holding that unp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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