Appeal in ITA No. 4545/Del./2000 is the appeal filed by the Revenue on 20th Nov., 2000, against the order of the CIT(A)-XXI, New Delhi, dated 31st Aug., 2000, in the case of the assessee in relation to order of assessment under section 143(3) for the asst. yr. 1997-98. In response, the assessee has filed on 12th Sept., 2002, a cross-objection numbered as CO No. 135/Del/2002. Appeal in ITA No. 2239/Del./2002 is the appeal filed by the assessee on 23 May, 2002, against the order of the CIT(A)-XVI, New Delhi, dated 21st Feb., 2002, in the case of the assessee in relation to assessment order under section 143(3) for the asst. yr. 1998-99.

2. As the common facts and disputes are involved in these appeals and the cross-objection, the same were argued together by the learned counsel for the assessee and the learned Departmental Representative. We are disposing them by this consolidated order for convenience.

3. The main dispute in these appeals pertains to the deduction claimed by the assessee-company on account of payments made to two companies, viz., Nestec Ltd. and Societe Des Produits, Nestle SA, hereinafter referred to as Nestec and SPN respectively. These two