TMI Blog2017 (11) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... en the assessee company and Toyoda Gosei Co. Ltd., similar disallowance of royalty payment for AYs 2008-09 and 2009-10 was deleted by CIT (A), against which no appeal has been filed by the Revenue before the Tribunal and all these facts have been duly elaborated in para 4.2 of the impugned order. In these circumstances, following the rule of consistency also, there is no illegality or perversity in the findings returned by ld. CIT (A) on the issue of royalty payment - Decided against revenue Depreciation @ 60% is allowable on UPS - Held that:- Identical issue has come up before the Tribunal in assessee’s own case for AY 2009-10 wherein order of CIT (A) deleting the similar addition was upheld and Tribunal by following the decision render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- 10-11-2017 - SHRI G.D. AGRAWAL, PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri P.N. Mehta, CA For The REVENUE : Ms. Shefali Swroop, CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : The Appellant, Deputy Commissioner of Income-tax, Circle 6(1), New Delhi (hereinafter referred to as the Revenue ) by filing the present appeal sought to set aside the impugned order dated 21.08.2013 passed by the Commissioner of Income-tax (Appeals)- IX, New Delhi qua the assessment year 2010-11 on the grounds inter alia that :- 1. Whether in the facts and circumstances of the case, the Ld. CIT (A) erred in deleting the addition of ₹ 1,19,35,426/- by holding Royalty payment as revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and circumstances of the case, the Ld. CIT (A) erred in holding that the provision of section 79 will not apply for the purpose of computation of book profit u/s 115JB in view of the fact that the provision of section 115JB(5) states that all other provisions of the Act shall apply? 3.1. Whether in the facts and circumstances of the case, the Ld. CIT (A) erred in deleting the disallowances amounting to ₹ 43,41,152/-, ₹ 5,22,462/- and ₹ 62,71,950/- on account of provisions for gratuity, warranty and earned leave respectively by holding these expenses as ascertained liabilities on the basis of actuarial certificates as actuarial certificates are just estimation of liabilities? 2. Briefly stated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revenue authorities below in the light of the facts and circumstances of the case. GROUNDS NO.1 to 1.3 5. Undisputedly, the assessee company had paid royalty @ 3% to 5% and no lump-sum payment has been made. It is also not in dispute that the agreement between the assessee company and Toyoda Gosei Co. Ltd. was for a specified period and thereafter assessee company has no right to manufacture any part for which the technical collaboration has been provided. 6. In the backdrop of the aforesaid facts and circumstances of the case, we are of the considered view that when the royalty payment has been made in accordance with the agreement for a specified period @ 3% to 5% on the manufactured items and no lump-sum payment has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of consistency, ground no.2 is determined against the Revenue. GROUNDS NO.3 3.1 10. Ld. AR for the assessee company supporting the order passed by ld. CIT (A) contended that the provisions contained u/s 115JB is a self contained code under which the amount which is as per the book profit to be reduced and not as per Income-tax record which have been computed under the provisions of the act and as per books of account, it is only the loss which is to be considered and not the amount i.e. not allowable under any provisions of the Act. 11. Identical issue has come up before the Tribunal in assessee s own case in AY 2009-10 in ITA No.6088/Del/2012 order dated 31.05.2013 decided in favour of the assessee by returning the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of actuarial valuation of the gratuity liability for the period from 01.04.2009 to 31.03.2010 as per AS-15 (R) and copy of annual accounts for the period ending 31.03.2010, available at pages 46 to 72 of the paper book. We are of the considered view that all these documents are required to be verified by the AO as to the figures of brought forward business loss or depreciation, actuarial valuation of the earned leave liability and actuarial valuation of the gratuity liability to recompute the book profit u/s 115JB. So, following the decision rendered by the coordinate Bench of the Tribunal in assessee s own case for AY 2009-10 (supra), grounds no.3 3.1 are determined against the Revenue as per observation made herein above. 13. Resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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