Royalty payment approved by RBI under FERA, 1973 considered adequate approval as per Industrial policy of the Government of India

ADIT(IT) Vs Aditya Vikram Global House Ltd. (ITAT Mumbai)- Royalty payment pursuant to a technical collaboration agreement in accordance with the Industrial policy of the Government of India, is exempt in the hands of the foreign company under clause (a) of Section 10(6A) of the Income tax Act, 1961. The Tribunal also held that approval of the Reserve Bank of India is sufficient confirmation that the technical collaboration agreement is in accordance with the Industrial Policy. Full Text of  the judgment is as follows:- INCOME TAX APPELLATE TRIBUNAL, MUMBAI ITA No. 5402/Mum/ 2007 – (Ass...