paid to Honda Motor Company, Japan as per the
'Technical Collaboration Agreement' ("TCA") as capital expenditure incurred
for acquisition of intangible ... facts and in law in holding that
in terms of the Technical Collaboration Agreement, intellectual property right
developed by Honda, Japan has been transferred
various factors, including current market
demand.
3. The nature of technical collaboration between the
Assessee and YMC does not necessitate obtaining upgrades or
modifications. However ... support is required by
the Assessee in connection with the Technical Collaboration
Agreements, the same is duly provided by YMC.
4. The technical and other
appellate order.
9. Ld. CIT (A) after analysing the Technical Collaboration
Agreement (TCA) and the benefits derived by the assessee from such
an agreement held
assessee.
The TPO also noticed that the assessee entered into technical
collaboration contract with M/s Honda Motor Company Ltd.
(Honda Japan). Under this agreement ... technical
guidance fee paid in terms of the Technical
5 ITA No. 962/Del/2015
Honda Siel Power Products Pvt. Ltd.
Collaboration Agreement
name of DIC India Limited (assessee herein) . We find
from the technical collaboration agreement entered into between assessee and DIC
Corporation, Japan on 5.12.2000 that ... Delhi dated 3.1.2001 , of technical collaboration
agreement dated 5.12.2000 . Later the technical collaboration agreement was
renewed with effect from 1.7.2008 with DIC Asia Pacific
assessee is at arm's length. The Technical
Collaboration Agreement stands approved by the
Government of India. The royalty payment has
been accepted
made for technical knowhow was capital in nature or revenue. The ownership
ITA Nos. 2210 & 2329/Del./2016 6
of the technical knowhow remained ... Bellsonica agrees to provide, during the term of this Agreement, technical
collaboration and license necessary to the manufacture, testing and quality control
of Products
assessee,on royalty remitted to Unilever Plc.-under the Technical
Collaboration Agreement,between the assessee and the AE-was excessive.It alternatively
held that
observed that:
26. The relevant facts are that under a Technical
Collaboration Agreement, the Assessee is granted
exclusive license to manufacture and sell the products
judgement are reproduced as under:
"On a reading of the technical collaboration agreement entered into
between the assessee and the foreign company ... because of 'transfer' of technology, but for providing 'technical
service: In such circumstances, the payment of roval/x which was
a continuous
