Dismissing the appeal of the revenue the Court held that the Tribunal is justified in quashing the reassessment on the ground that the Assessing Officer could not have revisited the same issue on the pretext that a binding decision was overlooked when the claim of expenditure in respect of royalty paid for acquiring technical knowledge was allowed in the scrutiny assessment. Followed CIT v. Kelvinator of India Ltd (2010) 320 ITR 561 (SC). Xerox Modicorp Ltd. v. Dy. CIT (2013) 350 ITR 308 (Delhi) (HC). (AY. 2002-03)
PCIT v. Moser Baer India Ltd. (2020) 114 taxmann.com 548 (Delhi) (HC) Editorial : SLP of revenue is dismissed, PCIT v. Moser Baer India Ltd (2020) 270 Taxman 4 (SC)
S. 147 : Reassessment-Business expenditure-Royalty-Reassessment was quashed on the ground that the AO could not have revisited the same issue on the pretext that a binding decision was overlooked. [S. 37(1), 148]