Income Tax Appellate Tribunal - Chennai
Dcit, Chennai vs M/S. Shriram Chits Tamilnadu Pvt.Ltd., ... on 10 February, 2017
आयकर अपीलीय अिधकरण, 'बी' यायपीठ, चे ई
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH, CHENNAI
ी एन.आर.एस. गणेशन, याियक सद य एवं
ी िड.एस. सु दर सह, लेखा सद य के सम
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No. 2743/Mds/2016
िनधा रण वष / Assessment Year : 2013-14
The Deputy Commissioner of M/s. Shriram Chits Tamilnadu Pvt.
Income Tax, v. Ltd.,
Corporate Circle 6(1), Greams Dugar, 4th Floor, No.149,
Chennai - 600 034 Greams Road, Chennai - 600 006.
PAN:AABCS0167N
(अपीलाथ /Appellant) (!"यथ /Respondent)
अपीलाथ क# ओर से/Appellant by : Ms. H. Kabila, JCIT
!"यथ क# ओर से/Respondent by : Shri ANR Jayaprathap, Advocate
सुनवाई क# तारीख/Date of Hearing : 01.02.2017
घोषणा क# तारीख/Date of Pronouncement : 10.02.2017
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-15, Chennai dated 27.06.2016 and pertains to the assessment year 2013-14. The only issue arises for consideration is disallowance of royalty paid by the assessee.
2 I.T.A. No. 2743/Mds/2016
2. Ms. Kabila, the Ld. Departmental Representative submitted that the assessee claimed an amount of ₹74,68,980/- as royalty said to be paid to Shriram Ownership Trust. According, to the Ld. D.R., even though, this Tribunal found the payment royalty as a revenue expenditure, now the appeal filed by the Revenue is pending before the High Court. Therefore, to keep the matter live to the extent of ₹74,68,980/- was disallowed after allowing depreciation of ₹24,89,660/- at the rate of 25%.
3. On the contrary Shri ANR Jayaprathap, the Ld. counsel for the assessee submitted that the very same issue, royalty payment was allowed by this Tribunal in the assessee's own case for the assessment year 2012-13 in ITA No. 373/Mds/2016 by an order dated 29.07.2016.
4. We have considered the rival submissions on either side and perused the material available on record. This Tribunal in the assessee's own case in ITA No. 373/Mds/2016 found that for using the logo which belongs to Shriram Ownership Trust, the assessee has to necessarily make payment. The payment was made on the basis of the turnover. In similar circumstances, this Tribunal found that the royalty payment has to be allowed as revenue expenditure under 3 I.T.A. No. 2743/Mds/2016 Section 37(1) of the Income Tax Act, 1961 (in short 'the Act'). In view of the above, this Tribunal is of the considered opinion that the CIT (Appeals) has rightly allowed the claim of the assessee. Mere pendency of the appeal before the High Court is not a reason for taking a different view. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority. Accordingly, the same is confirmed.
5. In the result, the appeal of the Revenue stands dismissed.
Order pronounced on 10th February, 2017 at Chennai.
Sd/- Sd/-
(िड.एस. सु दर सह) (एन.आर.एस. गणेशन)
(D.S. Sunder Singh) (N.R.S. Ganesan)
लेखा सद य/Accountant Member याियक सद य/Judicial Member
चे ई/Chennai,
दनांक/Dated, the 10 February, 2017.
th
JR.
आदेश क# !ितिलिप अ%ेिषत/Copy to:
1. अपीलाथ /Appellant
2. !"यथ /Respondent
3. आयकर आयु' (अपील)/CIT(A)-15, Chennai
4. आयकर आयु'/CIT
5. िवभागीय !ितिनिध/DR
6. गाड फाईल/GF.