https://www.taxtmi.com/caselaws?id=62106 The Appellate Tribunal ITAT Cochin ruled on the allowability of expenditure on royalty payment made by a private limited company. The company's payment was considered a revenue expenditure rather than capital, as it was part of the consideration for taking over assets and liabilities and obtaining sole-selling agency rights. The Tribunal rejected the argument of common ownership as a tax avoidance scheme and emphasized the legitimate business nature of the transaction. Ultimately, the Tribunal allowed the appeals, deeming the royalty payment deductible as a revenue expenditure. en-us Mon, 29 Nov 1976 00:00:00 +0530 Tue, 18 Jan 2011 11:24:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62106 The Appellate Tribunal ITAT Cochin ruled on the allowability of expenditure on royalty payment made by a private limited company. The company's payment was considered a revenue expenditure rather than capital, as it was part of the consideration for taking over assets and liabilities and obtaining sole-selling agency rights. The Tribunal rejected the argument of common ownership as a tax avoidance scheme and emphasized the legitimate business nature of the transaction. Ultimately, the Tribunal allowed the appeals, deeming the royalty payment deductible as a revenue expenditure. Case-Laws Income Tax Mon, 29 Nov 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62106