TMI Blog2022 (8) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee company has been paying trade mark licence utilization fee to the licensor for utilization of the brand Vimal under agreement to this effect. The assessee company claimed the entire licence fees paid during the year as revenue expenses whereas the AO treated the same as payment made for acquisition of trademark and licence within the meaning of capital assets as defined in Section 32(1)(ii) of the Act. Respectfully following the decision of the Tribunal, the CIT(A) has rightly deleted the addition as in earlier years also it has been observed that there is no dispute that the trade mark Vimal is owned by Vishu Company Trademark Pvt. Ltd. It is also true that the assessee has paid royalty as part of terms and conditions of the regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has raised the following grounds of appeal: 1) The Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs.5,77,140/- on account of delayed payment of Employees contribution to P.F. E.S.I.C. u/s.36(1)(va) r.w.s. 2(24)(x) of the Act made by the AO, while observing that provisions of Section 43B are no longer applicable in respect of deduction allowed u/s.36(1)(va) of the Act. Considering the decision rendered by Hon ble Karnataka High Court in the case of Essae Teraoka (P.) Ltd. Vs. DCIT (2014) 43 taxmann.com 33 (Karnataka), the addition of Rs.5,77,140/- confirmed by the Ld. CIT(A) deserves to be deleted. 3. The assessee company is engaged in the business of manufacturing of Pan Masala without tobacco and P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 2012-13, 2013- 14, 2014-15, 2015-16 and 2016-17. The said observation was made by the CIT(A) in paragraph no.4.2 as well. The Tribunal in assessee s own case for A.Y. 2016-17 has decided the issue thereby relying the decision of the Tribunal in earlier years (ITA No.1190 to 1192/Ahd/2018 ACIT vs. Vishnu Pouch Packaging Pvt. Ltd., order dated 18.12.2019). In the present A.Y. the CIT(A) has observed that the assessee paid a sum of Rs.6,89,75,000/- as trade mark licence utilization fees and debited the said amount under the head selling and distribution expenses , the assessee company came into existence after conversion of erstwhile firm namely M/s Vishnu Packaging (firm) and the firm was also carrying out the same business of manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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