1. Issue notice.

2. Mr. Dileep Shivpuri accepts notice for the respondent. With consent, the appeal is taken up for disposal.

3. The question of law sought to be urged in this appeal by the assessee is: whether the Income Tax Appellate Tribunal (in short the Tribunal) was right in holding that segregation of the transaction including inter alia royalty and fee for technical services, was not permissible in the circumstances of the case.

4. The facts necessary for disposal of this appeal, having regard to the final order that this Court proposes to pass, are that the assessee entered into an arrangement with the Gruner AG towards licensing of its brand and also for supply of technical know-how. These were evidenced by two agreements dated 06.03.2009 and 25.06.2009. The first agreement was a trademark and technical know-how licensing arrangement which required the assessee to pay a fixed percentage i.e. 8% of the net ex-factory sale price exclusive of excise and other duties, in accordance with the formulae agreed upon by the parties. The second agreement dated 25.06.2009 was for the purposes of providing “High Technical Support” on a continuous monitoring basis. In terms of the