9911796707
TMI Blog2024 (2) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) for the assessment years 2013-14 & 2014-15. 2. Since the issues are common and connected and the appeals and cross objections were heard together, these are being disposed off by this common order. REVENUE'S APPEALS : 3. Apropos disallowance under section 80IC of the Income-tax Act, 1961 (for short 'the Act') : The assessee had, during the relevant year, claimed deduction under section 80IC of the Act of Rs.2,01,79,454/- being 30% of profits of Rs.6,72,64,845/- derived from the eligible business i.e. Parwanoo unit. The same was disallowed by the AO. Ld. CIT (A) vide his order dated 09.11.2017, following the orders passed by the ld. CIT (A) in assessee's own case for AYs 2010-11 to 2012-13, deleted the disallowance of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to be capital in nature and covered within the meaning of intangible asset u/s 32(1)(ii) of the Act, after allowing depreciation @ 25% thereon. Ld. CIT (A) deleted the disallowance following the orders passed by the Tribunal in assessee's own case in earlier years. We may gainfully refer to the concluding portion of ld. CIT (A)'s order as under :- "In the present case, the appellant has submitted that in appellant's own case for assessment year 2004-05, the Hon'ble Tribunal has allowed royalty fee paid to Henkel KGaA under section 37(1) of the Act as revenue expenditure on the ground that payment was only for right to use the technical know-how and no benefit of enduring nature accrued to the appellant. Following the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objections. Ld. Counsel of the assessee, at the outset, admitted that this issue has been decided by the Special Bench of the ITAT (Mumbai) in the case of DCIT vs. Total Oil India Pvt. Ltd. (2023) 149 taxmann.com 332 wherein it has been held that the beneficial rate for taxation of dividend under application DTAAs is not applicable on the DDT paid on dividends inasmuch as DDT is an additional income tax in the hands of the company and not the shareholder i.e. DDT is a tax liability of the company on the profits it seeks to distribute as dividend and not income in the hands of the shareholder with incidence of payment of tax on the company. Accordingly, following the precedent, we reject this objection raised by the assessee. 10. Our above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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