,, IN INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ITA No.810/Chny/2019 Assessment Year: 2014-15 Asst. Commissioner of- Vs. M/s.Shriram Chits Tamilnadu- Income Tax, Pvt. Ltd., Corporate Circle-6(1)(i/c), No.1, 2nd Floor, No.145, Chennai. Santhome High Road, Mylapore, Chennai-600 004. [PAN: AABCS0167N] ( Appellant) (Respondent) Department by : Mr. R.Clement Ramesh- Kumar, Addl.CIT Assessee by : Mr.Samireddy Sai Sarat- Chandra, Adv. Date of Hearing : 10.07.2019 Dt. of Pronouncement : 26.08.2019 ORDER PER SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER: Revenue filed this appeal against order of Commissioner of Income Tax (Appeals)-15, Chennai, in ITA No.413/2016-17/CIT(A)-15 dated 31.12.2018 for AY 2013-14. 2. only grievance of Revenue is that Ld.CIT(A) directed AO to allow royalty payments claimed by assessee. Revenue has raised following grounds: ITA No.810/Chny/2019 :- 2 -: 1. order of Ld. CIT(A) is contrary to law and facts of case. 2. Ld. CIT(A) erred in deleting disallowance of royalty claim of Rs.72,21,334/- by relying on decision of Hon'ble Tribunal vide its order in ITA No.2743/MDS/2016 dated 10-02-2017 for AY 2013-14 in assessee's own case, decided in favour of assessee. 2.1. Ld. CIT(A) failed to appreciate that Revenue has filed appeal against order of Hon'ble Tribunal before Hon'ble High Court Madras, which is still pending. 2.2. Ld. CIT(A) erred in treating expenditure on royalty as revenue in nature, though assessee had got enduring benefit on acquiring intangible asset. 3. For these and other grounds that may be adduced at time of hearing, it is prayed that order of Ld. CIT(A) be set aside and that of Assessing Officer restored. 3. Ld.Counsel for assessee submitted that same issue has been taken up by Hon ble ITAT in assessee s own case for AY 2013-14 and decided this issue in favour of assessee. 4. Per Contra, Ld.Counsel for DR submitted that this issue has not reached its finality and appeal is pending before Hon ble jurisdictional High Court. Therefore, orders passed by Ld.CIT(A) to be confirmed. 5. We have heard both sides and perused materials available on record. We have also perused orders of Tribunal in assessee s own case for AY 2013-14 in ITA No.2743/Mds/2016 dated 10.02.2017. same is re-produced hereunder: .4. We have considered rival submissions on either side and perused material available on record. This Tribunal in assessee s own case in ITA No.373/Mds/2016 found that for using logo which belongs to Shriram Ownership Trust, assessee has to necessarily make payment. payment was made on basis of turnover. In similar circumstances, this Tribunal found that royalty payment has to be allowed as ITA No.810/Chny/2019 :- 3 -: revenue expenditure under Section 37(1) of Income Tax Act, 1961 (in short Act ). In view of above, this Tribunal is of considered opinion that CIT (Appeals) has rightly allowed claim of assessee. Mere pendency of appeal before High Court is not reason for taking different view. Therefore, this Tribunal do not find any reason to interfere with order of lower authority. Accordingly, same is confirmed . 6. Ld.DR could not controvert findings of Tribunal by filing order of any higher court or modified or rectified or reversed. In view of above, we are of considered opinion that Ld.CIT(A) has rightly allowed claim of assessee. Therefore, we are of firm view that we do not find any reason to interfere with orders of lower authorities. Consequently, grounds raised by Revenue are dismissed. 7. In result, appeal filed by Revenue is dismissed. Order pronounced on 26th day of August, 2019, in Chennai. Sd/- Sd/- (S. JAYARAMAN) (DUVVURU R.L. REDDY) ACCOUNTANT MEMBER JUDICIAL MEMBER Chennai, 0 Dated: 26th August, 2019. TLN 1232 Copy to: 1. Appellant 4. 4 CIT 2. Respondent 5. 2 DR 3. 4 CIT(A) 6. GF Asst. Commissioner of Income-tax, Corporate Circle-6(1)(i/c), Chennai v. Shriram Chits Tamilnadu Pvt. Ltd