ITAT MUMBAI BENCH ‘I’
Mettler Toledo India (P.) Ltd.
versus
Income-tax Officer
IT Appeal Nos. 2152, 2153 & 2574 (Mum.) of 2007
[ASSESSMENT YEARS 2002-03 & 2003-04]
Date of Pronouncement- 28.09.2012
ORDER
Rajendra Singh, Accountant Member
These cross-appeals for the assessment year 2002-03 and appeal of the assessee for the assessment year 2003-04 are directed against different orders both dated January 15, 2007, of the Commissioner of Income-tax (Appeals) for the assessment years 2002-03 and 2003-04 respectively. These are being disposed of by a single consolidated order for the sake of convenience. The disputes raised in these appeals relate to dis allowance of expenditure incurred for trade mark, dis allowance of foreign exchange fluctuation loss and addition on account of capital gain in relation to sale of personal weighing scale business.
2. The appeals of the assessee in I. T. A. No. 2152/M/07 and I. T. A. No. 2153/M/07 for the assessment years 2002-03 and 2003-04.
3. These appeals are being taken up together as disputes raised in these appeals are identical. The assessee has raised disputes on two different grounds which relate to dis allowance of expenditure on trade mark and dis allowance of foreign exchange fluctuation loss.
4. The facts concerning the dis allowance of expenditure on acquisition of trade mark are that the Assessing Officer during the assessment proceedings noted that the assessee in terms of agreement dated June 1, 1998 with Hari Mohan Puri had acquired his rights, title and interest in the brand “Libra” and the right to manufacture and market sales, weighing device, equipment or instruments both mechanical or electronic for lump sum payment of Rs. 1 crore. The assessee had written off the said sum of Rs. 1 crore during the assessment years 1999-00 to 2004-05 as under :
