crore
as royalty payment and Rs. 6.83 crore as franchisee fee to McDonald's
Corporation. The assessee also paid Rs. 1.70 crore ... Cess on such
royalty and franchisee fee. The TPO determined Nil ALP in respect of
royalty fee and franchisee fee. The Assessing Officer also disallowed
processes etc. of the assessee
are used by the franchisee. The assessee" gets franchisee fees
from the franchisee at the time of agreement ... franchisee, the sales are
recorded in the books of account of the franchisee and not of
the assessee and franchisee fees and royalty are received
deletion of addition which relates to
disallowance of 25% of franchisee fee by treating it as capital expenditure in
nature by holding that it gives ... Southern Switchgear Ltd. , 148 ITR 272 for disallowing 20%
of the franchisee fee of Rs.1,55,66,461/- which works
made by the AO on account
of franchisee fee amounting to Rs.7,12,40,589/- treating it as a recurring revenue
expenditure ... Power Ltd. "
20. The ground No. 1 is disallowance of Franchisee fee of Rs.7,12,40,589/- by holding it
as capital expenditure
failed to appreciate that the receipts/payment of royalty
and initial franchisee fee is being diverted by the overriding title at the very source.
Ground ... above payment (mentioned as Initial Franchisee Fee in the order of TPO). It is
evident that the foreign exchange fluctuation loss
made by the Assessing Officer in respect
of franchisee fees received by the DPS Society from
different satellite schools which are running under the
name ... made by the Assessing Officer in respect of
franchisee fee received by the assessee DPS Society from different satellite
schools which are running under
fact by ignoring that
the receipts are on account of franchisee fee and the same are
in the nature of business income within the meaning ... ignoring the fact that the receipt are on account of
franchisee fees and same are in the nature of business income within the
meaning
ignoring the fact that the receipt are on account of
franchisee fees and same are in the nature of business income within
the meaning ... ignoring the fact that the receipts are on
account of franchisee fees and same are in the nature of business income
within the meaning
made by AO in respect of franchisee fees received by the DPS Society
from different satellite schools which are running under the name
and logo ... towards maintenance charges which were in fact in
the nature of franchisee fees obtained by Society for allowing such
satellite schools to use its brand
covenant 9 which deals with
Franchise fee which reads as under:
7
9. FRANCHISE FEE: Franchisee shall pay to Franchisor fee
for the right ... License and location fees for your market, this memo confirms
that the fee will be US$ 22,500 per store. The fee
