Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: cpt :: ACCOUNTING STANDARD :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: due date for vat payment
 
 
From the Courts »
  Vatsala Shenoy vs. JCIT (Supreme Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 M.K.Overseas Pvt. Ltd. Vs. Pr.Commissioner Of Income Tax-06
 Arshia Ahmed Qureshi Vs. Pr. Commissioner Of Income Tax-21
 CHAUDHARY SKIN TRADING COMPANY Vs. PR. COMMISSIONER OF INCOME TAX-21
  Sushila Devi vs. CIT (Delhi High Court)
  Vatsala Shenoy vs. JCIT (Supreme Court)
 Deputy Director Of Income Tax Vs. Virage Logic International
 Commissioner Of Income Tax-3 International Taxation Vs. Virage Logic International India
 Pr. Commissioner Of Income Tax-06 Vs. Moderate Leasing And Capital Services Pvt. Ltd.
 ITO vs. Vikram A. Pradhan (ITAT Mumbai)

ACIT, Circle 12 (1),New Delhi. Panchwati, Gurgaon (Haryana). vs. M/s. G4S Security Systems (India) Pvt. Ltd., 82A, Sector 18,
March, 14th 2014
             IN THE INCOME TAX APPELLATE TRIBUNAL
                  (DELHI BENCH `C' : NEW DELHI)

        BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER
                            AND
            SHRI A.T. VARKEY, JUDICIAL MEMBER

                            ITA No.2125/Del./2013
                       (ASSESSMENT YEAR : 2009-10)

ACIT, Circle 12 (1),           vs.    M/s. G4S Security Systems (India) Pvt. Ltd.,
New Delhi.                            Panchwati, 82A, Sector 18,
                                      Gurgaon (Haryana).

                                             (PAN : AAACG2185M)

       (APPELLANT)                                  (RESPONDENT)

                   ASSESSEE BY : Shri Arun Bansal, CA
                 REVENUE BY : Shri Satpal Singh, Senior DR

                                      ORDER

PER B.C. MEENA, ACCOUNTANT MEMBER :

       This appeal filed by the revenue emanates from the order of CIT

(Appeals)-XV, New Delhi dated 24.01.2013 for the assessment year 2009-10.

2.     The assessee company engaged in the business of providing and

installing the security systems, viz., CCTV systems etc. The return of income

was filed declaring a loss of Rs.1,99,38,274/- on 15.10.2010. The Assessing

Officer made an addition of royalty paid of Rs.12,75,823/- to M/s. Group 4

Holding which is 75% of the royalty paid and depreciation of 25% was

allowed.     The CIT (A) allowed the claim of the assessee as revenue

expenditure. The relevant para of the CIT (A) read as under :-
                                       2               ITA No.2125/Del./2013




      "5. I have carefully considered the facts of the case, order of
      the A.D. and the detailed submission made by the learned AR in
      the light of several Judicial pronouncements in this regard. Since
      on same facts the Hon'ble Delhi High Court in the case of
      appellant company has already dismissed the departmental
      appeal in earlier years and held the royalty expenses as revenue
      in nature and not capital, finality in the matter has been attained.

      5.2 In view of the same, respectfully following the decision of
      the Hon'ble Delhi High Court in the appellant's own case for
      A.Y. 2002-03, 2003-04 and 2005-06, I hold that the payment of
      royalty in the present case as allowable revenue expenditure.
      Therefore, the ground No.1 of the appeal is allowed in favour of
      the appellant."


3.    Now, the revenue is in appeal by taking the following grounds :-

      "1. On the facts and circumstances of the case and in law,
      the Ld. CIT (A) has erred in deleting the disallowance of
      royalty expenses of Rs.12,75,823/- holding the same as
      revenue expenditure.

      2.   The appellant craves leave to add, alter or amend any
      ground of appeal raised above at the time of hearing."


4.    At the outset of the hearing, the ld. AR submitted that this issue is

covered by the decision of ITAT in assessee's own case in the Assessment

Years 2007-08 and 2008-09 in ITA Nos.485/Del/2012 and 486/Del/2012

dated 20.04.2012.




5.    We have heard both the sides on the issue. We find that the ITAT has

granted the relief to the assessee relying on the decision of Hon'ble Delhi

High Court in the assessee's own case for Assessment Years 2002-03, 2003-

04 and 2005-06. The ITAT has allowed the claim of the royalty as revenue
                                       3              ITA No.2125/Del./2013

expenditure in assessee's own case in Assessment Years 2007-08 and 2008-

09 vide its order dated 20.12.2012. In view of these facts and circumstances

of the case, we find no merits in the appeal of the revenue and the same is

dismissed.

6.    In the result, the appeal of the revenue stands dismissed.

     Order pronounced in open court on this 12th day of March, 2014.

                  Sd/-                                   sd/-
           (A.T. VARKEY)                           (B.C. MEENA)
         JUDICIAL MEMBER                       ACCOUNTANT MEMBER

Dated the 12th day of March, 2014
TS

Copy forwarded to:
     1.Appellant
     2.Respondent
     3.CIT
     4.CIT(A)-XV, New Delhi.
     5.CIT(ITAT), New Delhi.
                                                              AR, ITAT
                                                             NEW DELHI.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions