TMI Blog2010 (8) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue against the order of CIT(A) dated 16.3.2010 for the AY 2005-06. 2. The only grievance of the Revenue relates to deleting disallowance of royalty payment. 3. At the outset, learned AR placed on record the order of the Tribunal in assessee s own case for the AY 2001-02 and 2002-03, order dated 22.4.2009, wherein action of the CIT(A) for deleting disallowance of royalty payment was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serving that it was on capital account. Under similar facts and circumstances for the AY 2001- 02 2002-03, against the deletion of disallowance of such 25% of royalty payment, the Tribunal affirmed the order of the CIT(A) after having the following observations:- 4. We have heard the parties and considered the rival submissions. It is not in dispute that it is running agreement under which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the Hon'ble Supreme Court in the case of Southern Switchgear Ltd. vs. CIT (supra) was for a payment of lump sum amount in connection with setting up of the factory and 25% thereof was held to be capital in nature, and therefore, there was a transfer of ownership of technical information in that case. Therefore, the said decision will not apply to a running royalty and would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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