TMI Blog2017 (7) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... ark “Kirloskar”. For allowing the use of the trademark “M/s.Kirloskar Proprietary Limited charges from the Assessee 0.25% on annual turnover as royalty. For the earlier years also i.e. for the Assessment Years 2007-08 and 2008-09, the same is accepted as the revenue expenditure by the Assessing Officer. The finding of fact have been concurrently arrived at by the Commissioner (Appeal) and the Tribunal in a plausible manner. - Income Tax Appeal No. 51 of 2015 - - - Dated:- 17-7-2017 - S. V. Gangapurwala And A. M. Badar, JJ. Mr. Tejveer Singh for the Appellant Mr.R. Muralidhar a/w. Mr.Rohan Deshpande i/b. Mr.Mihir C. Naniwadekar for the Respondent ORDER Per Court 1] The present appeal pertains to Assessment Year 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. The Assessing Officer has rightly considered the nature of the agreement. Even the technical knowhow has been passed on to the Assessee. Thereby the said expenses are capital in nature. All this aspect has not been considered by the authority. 4] The learned counsel for the Respondent supports the order. 5] The Tribunal in its order has observed as under; 7. We have carefully considered the rival submissions. The pertinent facts which emerge from the orders of the authorities below can be summarized as follows. The assessee is using the name 'Kirloskar' in its business operations. The copyright of 'Kirloskar' name is with M/s. Kirloskar Proprietary Limited and in terms of an agreement, assessee pays a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , namely, in the course of carrying on of its business operations and the expenditure incurred in connection thereof would be revenue in nature. Therefore, in our considered opinion, the CIT(A) made to mistake in directing the Assessing Officer to treat the impugned expenditure as a revenue expenditure. 6] It would be seen that the Assessee pays an amount of ₹ 1 lakh per annum as license or copyright fees to M/s. Kirloskar Proprietary Limited for use of the name. The Assessee is also admitted as a member of M/s. Kirloskar Proprietary Limited and the Assessee has agreed to maintain the quality and to comply with the specifications prescribed by the said concerned. There is no transfer of a technical nohow. The M/s.Kirloskar Propri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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