CIT Vs. FEDERAL MOGUL TPR INDIA LTD

JUDGEMENT

(1.) THE Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) dated 30th September, 2011 whereby its Appeal against the order of the Ld. CIT (Appeals)-XIII, New Delhi was dismissed.

(2.) THE impugned order upheld the view of the CIT (Appeals) vis-a-vis, the amounts calculated @ 3% of the net ex-factory sale price paid as royalty to Telkoku Piston Ring Company Ltd., in accordance with its agreement.

(3.) IN the present case, royalty amount is to be paid as 3% of the net ex- factory sale by the licensee/assessee. The Tribunal, however, came to the conclusion that for transfer of technical knowledge and information and on proper examination of this Court's decision in CIT v. Sharda Motor Industries Ltd. the amounts were deductable. This Court is not persuaded that any question of law arises for consideration, the appeal is accordingly dismissed.