Income Tax Appellate Tribunal - Delhi
Climate System India Ltd., New Delhi vs Department Of Income Tax on 28 November, 2011
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH `B': NEW DELHI
BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT
AND SHRI I.P. BANSAL, JUDICIAL MEMBER
I.T. A. No.480/Del/2012
Assessment Year : 2007-08
Asstt. Commissioner of Income-tax, M/s. Climate System India Ltd.,
Circle 3(1), New Delhi. Vs. SP-812A Industrial Area,
Phase-II, Bhiwadi-301019,
Rajasthan.
PAN: AAACC1074D
(Appellant) (Respondent)
Appellant by : Ms. Y. Kakkar, Sr. DR.
Respondent by : Shri Ashish Agrawal, CA.
ORDER
PER G.D. AGRAWAL, VICE PRESIDENT:
This is an appeal filed by the Revenue. It is directed against order passed by the Commissioner of Income-tax (Appeals)-VIII, New Delhi, dated 28th November, 2011 for the Assessment Year 2007-08. The solitary ground of appeal raised by the Revenue reads as under:-
"The Ld. CIT(A) has erred in deleting the addition of Rs.42,34,727/- made by the Assessing Officer on account of Royalty expenses.
2. It was noticed by the Assessing Officer that the assessee had debited a sum of Rs.56,46,303/- on account of royalty expenses incurred by the 2 assessee as per Technical Collaboration Agreement with Ford Motor Company, USA to manufacture Controlled Atmosphere Brazed aluminium heat exchangers (CAB) (Radiators) with technology owned by Ford Motor Co., USA and this issue has been constantly arising in earlier years and it was brought to the notice of the Assessing Officer that the deletion of this addition was even confirmed by the Hon'ble High Court of Delhi in respect of the A.Y. 2002-03 vide order dated 9th October, 2009 in ITA No.464 of 2009 and for Assessment Year 2003-04 and 2004-05 vide order dated 17th December, 2009. However, the Assessing Officer has repeated the addition on the ground that the Department has filed SLP with the Apex Court against the aforementioned order of Hon'ble Delhi High Court. The learned CIT(A) deleted the addition following the aforementioned orders of the Hon'ble Delhi High Court.
3. In this view of the situation after hearing both the parties, we are of the opinion that relief has rightly been given by the learned CIT(A). As the issue is covered by the earlier decision of ITAT which has been confirmed by the Hon'ble Delhi High Court and this fact has not been disputed by the Assessing Officer in the assessment order but he has repeated the addition simply because the Department has preferred SLP against the aforementioned order of the Hon'ble High Court of Delhi, we do not find 3 any infirmity in the order of the CIT(A). Therefore, we dismiss this appeal filed by the Revenue.
4. In the result, the appeal filed by the Revenue is dismissed.
5. This decision is pronounced in the Open Court on 13th April, 2012.
Sd/- Sd/-
(I.P. BANSAL) (G.D. AGRAWAL)
JUDICIAL MEMBER VICE PRESIDENT
Dated: 13th April, 2012.
Copy of the order forwarded to:-
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR By Order
*mg Deputy Registrar, ITAT.