Pr. Commissioner of Income-tax-06 v. Modi Apollo International Group (P) Ltd - 2017-LL-0731-9

Citation	2017-LL-0731-9
Appellant Name	Pr. Commissioner of Income-tax-06
Respondent Name	Modi Apollo International Group (P) Ltd.
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	31/07/2017
Assessment Year	2007-08
Judgment	View Judgment
Keyword Tags	fee for technical services • payment of royalty • usa • deduction of tax at source • capital or revenue expenditure
Bot Summary:	These are two appeals by the Revenue against the common order dated 30th November, 2016 by the Income Tax Appellate Tribunal in ITA No. 223/Del/2011 and ITA No. 5396/Del/2013 for the Assessment Years 2007-08 and 2009-10 respectively. At the outset, it requires to be noted that there are concurrent findings by both the Commissioner of Income Tax CIT(A) as well as the ITA Nos.477/2017, 478/2017 Page 1 of 2 ITAT against the Revenue on the two main issues urged in these appeals. The second concerns the deletion of the addition made by the Assessing Officer on account of royalty payment to AII by holding it to be capital in nature. On the second issue it was found that the payment of royalty was with reference to the gross fee collected and there was no capital element involved in it. Having heard the learned counsel for the Revenue, the Court is satisfied that the above concurrent findings suffer from no legal infirmity. No substantial question of law arises for consideration. The appeals are dismissed but in the circumstances, no order as to costs.

IN HIGH COURT OF DELHI AT NEW DELHI ITA No. 477/2017 ITA No. 478/2017 PR. COMMISSIONER OF INCOME TAX-06 ..... Appellant Through: Mr. Rahul Chaudhary, Sr. Standing Counsel with Ms. Lakshmi Gurung, Advocate. Versus MODI APOLLO INTERNATIONAL GROUP (P) LTD. ..... Respondent Through: Mr. Neeraj Jain, Advocate with Mr. Aniket D. Agrawal, Mr. Aditya Vohra, Advocates. CORAM: JUSTICE S. MURALIDHAR JUSTICE PRATHIBA M. SINGH ORDER % 31.07.2017 C.M. No. 22517/2017 (exemption) in ITA No. 477/2017 1. Allowed, subject to all just exceptions ITA Nos. 477/2017 & 478/2017 2. These are two appeals by Revenue against common order dated 30th November, 2016 by Income Tax Appellate Tribunal ( ITAT ) in ITA No. 223/Del/2011 and ITA No. 5396/Del/2013 for Assessment Years ( AY ) 2007-08 and 2009-10 respectively. 3. At outset, it requires to be noted that there are concurrent findings by both Commissioner of Income Tax (Appeals) [ CIT(A) ] as well as ITA Nos.477/2017, 478/2017 Page 1 of 2 ITAT against Revenue on two main issues urged in these appeals. first is whether payment made by Assessee to Apollo International Inc., USA (AII) for evaluation of reports and course content was fee for technical services (FTS) and subject to TDS under Section 195 of Act. second concerns deletion of addition made by Assessing Officer (AO) on account of royalty payment to AII by holding it to be capital in nature. 4. concurrent findings of CIT (A) and ITAT are that there was no element of profit embedded in reimbursement for evaluation undertaken and, therefore, it was not FTS. ITAT also noted that no technical expertise/services were required to render assistance for identification of candidates for admission. On second issue it was found that payment of royalty was with reference to gross fee collected and there was no capital element involved in it. 5. Having heard learned counsel for Revenue, Court is satisfied that above concurrent findings suffer from no legal infirmity. No substantial question of law arises for consideration. 6. appeals are dismissed but in circumstances, no order as to costs. S. MURALIDHAR, J. PRATHIBA M. SINGH, J. JULY 31, 2017/ anb ITA Nos.477/2017, 478/2017 Page 2 of 2 Pr. Commissioner of Income-tax-06 v. Modi Apollo International Group (P) Ltd

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