assessee
in order to impress upon the A.O that the franchisee fees was rightly
claimed as a revenue expenditure, submitted as under ... aforesaid conviction relied on Clause 7
of the Franchisee Agreement, which provided as regards the franchisee
fee as under:-
"7.1. As consideration
allowed on total
franchisee cost in the first year itself on accrual basis and not on the
franchisee fees paid during the relevant year ... that the assessee has claimed Rs.
58,44,60,480/- as franchisee fee in its P & L Account. He further noted that
this respect.
4.5 To understand the manner of computation of the
franchisee fees, as per the Schedule C to the agreement we
reproduce ... invoices issued, for charging franchisee
fees from the appellant. This invoice is also depicted in the
ledger account of Franchisee Fees maintained by the appellant
McDonald‟s
USA
7. According to the Department, the franchisees, apart
from remitting franchisee fees and royalty amount were also
required to contribute ... determined
under the 2006 Rules. Thus, since the franchisee, apart from
remitting franchisee fees and royalty amount, had also to
contribute at least
holding that the international related party transaction
pertaining to payment of Franchisee Fee by the Appellant to its Associated
Enterprises ('AEs') namely Royal ... same facts on the issue of disallowance of payment
of Franchisee fees;
5.3 not acknowledging the Appellant's inability to legally operate
Kalyan Cess on
service tax of INR.23,38,000/-) being franchisee fees paid to Board of
Control for in India (BCCI) to participate ... allowed deduction as claimed by the Assessee in respect of franchisee
fees of INR.44,98,40,000/- paid to BCCI to participate
appeal are in respect of deduction of franchisee consideration. The
primary issue is, whether the 'Franchisee Fee' paid by the assessee is capital ... Franchisee
agreement with BCCI - IPL on 04/04/2008. The assesse paid Rs.30,03,60,000/- as annual
'Franchisee Fee' to BCCI
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
assessee.
3.1. In the original return of income, assessee capitalized
entire franchisee fee of Rs. 428.04 Crores and claimed depreciation
@ 25%. Later, assessee filed revised ... Going by the enduring right over the franchisee
assessee acquired, the AO proposed to treat the franchisee fee as
capital and required assessee to furnish
during the year earned income by way of running
courses and franchisee fees of Rs. 18,56,401/-. The DIT(Exemption)
being of the view ... appreciate that
the receipts by way of running courses and franchisee fees of Rs.
18,56,401/- were received by the assessee in furtherance
