The Madras High Court has held that the assessee availed Direct Tax Vivad Se Vishwas Act, 2020 benefit order for final settlement of Income Tax arrears.
The appellant-Revenue challenging the order dated 14.06.2016 passed by the Income Tax Appellate Tribunal, Chennai relating to the assessment year 2010-11.
The issue raised was whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT was right in treating the royalty payments made to M/s.Chevron Oronite Company LLC USA as nothing but revenue expenditure not resulting in any acquisition of intangible assets when the assessee is enjoying enduring benefit by infusion of new technology. Is not he finding of the Tribunal bad in law especially when the royalty falls under the definition of intangible assets as per the provisions of section 32(1)(ii) of the Act and the said expenditure is to be treated only as capital expenditure
The respondent / assessee, M/s. Indian Additives Ltd submitted that during the pendency of this tax case appeal, the assessee has availed the benefit conferred under the Direct Tax Vivad Se Vishwas Act, 2020 and filed necessary declarations, which were accepted and Form 5 / order for full and final settlement of tax arrears, was also issued by the Income tax department.
The division bench of Justice R.Mahadevan and Justice J.Satyanarayana Prasad opined that nothing survives for adjudication in this appeal. Recording the submission so made by the learned counsel on either side, the Tax Case Appeal stands disposed of.
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